Hello, N2K’ers!

This week, our world-famous News Haiku™ competition theme is that the U.S. Air Force is eyeing the purchase of Tesla Cybertrucks — in order to blow them up. Send me a haiku on the subject by Thursday at noon ET right here. Winner gets glory — lots of glory, and a GIF!

Here’s Patricia Burton’s effort from yesterday:

Nice. Now let’s talk about the news you Need2Know?

—Matt Davis, Need2Know Chedditor

News You Need2Know

What’s the stock market up to, eh?

$SPX ( ▲ 1.13% )   $DJI ( ▲ 1.1% )   $NDX ( ▲ 1.39% )

Companies mentioned in today’s newsletter

StubHub, $EBAY ( ▲ 1.85% ) , $TKTMV ( 0.0% ) , $SEAT ( ▲ 1.07% ) , and SeatGeek, $AAPL ( ▲ 1.09% ) , OpenAI, X, XAI

Wall Street flirts with records on rate cut hopes

Wall Street had a great Tuesday with the S&P 500 nearing its record high after inflation data came in slightly better than economists anticipated. Major markets signaled optimism that the Federal Reserve may cut interest rates at its upcoming meeting.

The latest inflation report revealed a 2.7% rise in prices for U.S. consumers in July compared to the previous year — just below the forecasted 2.8%.

Big moves in the markets tend to occur when things are just 0.1% better or worse than everyone expected, and that’s what happened yesterday. Sure, everything is almost 3% more expensive than it was last year, but we were expecting it to be worse. That’s the sentiment. Markets are weird.

The inflation data has heightened expectations for a rate cut in September. Traders now see a 94% chance of the Fed reducing rates. Lower interest rates would make borrowing cheaper for households and businesses, boosting economic activity.

However, the decision isn’t straightforward. “Eventually, tariffs can show up in varying degrees in consumer prices,” explained Brian Jacobsen, Chief Economist at Annex Wealth Management. He added that price shifts “will confound the Fed and economic commentators for months to come.”

Song of the day: Charley Crockett, ‘Crucified Son’

A country and in some ways funky autobiographical song from Charley Crockett, “the lyrical hook was likely inspired from the experience of having his name turned to mud locally after his brother was arrested while he was a young man,” explains one reviewer. It “sounds like an Elton John (circa 1970) album cut that was left on the editing room floor,” writes a commenter on the review “which I mean as high praise.”

Trump places Washington DC police under federal control

President Donald Trump's decision to deploy the National Guard to Washington D.C. has ignited controversy, with his administration claiming a commitment to cracking down on rising crime and homelessness. They will be “getting rid of the slums,” Trump said.

Despite Trump's assertions, crime statistics in the capital paint a different picture. Local police records indicate a 7% reduction in crime and a 26% drop in violent crime year-to-date, countering the president's “crime, murder, and death” narrative.

The move has drawn criticism from city officials and residents alike. Washington D.C. Mayor Muriel Bowser, a Democrat, refuted Trump’s claims of a crime-ridden capital.

“We are not experiencing a crime spike,” she stated, emphasizing the city’s 30-year low in violent crime. She called Trump’s move “unsettling and unprecedented.”

Meanwhile, Donald Whitehead, Executive Director of the National Coalition for the Homeless, criticized Trump's approach to homelessness, noting that displacing encampments often increases crime rather than reduces it.

A protest formed outside the White House with dissenters chanting “hands off D.C.” and advocating for home rule.

Let us know what you think of the move in today’s poll below.