Economists went from “yay!” to “c’mon man” yesterday when the Federal Reserve announced a more-careful-than-expected outlook for interest rate cuts just a few hours after an encouraging new inflation report suggested that rising consumer costs are finally mellowing out.

One thing that came as no surprise: The Fed held interest rates steady at a 23-year high of 5.25%–5.5% for its seventh straight meeting.

It’s giving caution. Fed Chair Jerome Powell said that “inflation has eased substantially…but is still too high” to start cutting rates. Looking ahead, the Fed is projecting only one rate cut before year’s end—down from earlier forecasts of two—with no word on how soon it might happen.

A few hours earlier…the latest consumer price index (CPI) report showed some inspiring inflation numbers that had economists expecting JPow to be a bit more bullish on 2024 rate cuts than he was.

• The CPI, a broad measure of prices for goods and services, came in below Wall Street’s estimates with no monthly increase in May and only a 3.3% uptick from the year prior. Core CPI, which excludes volatile food and energy prices, also beat expectations.
• Grocery prices were only up 1% from May 2023, while gas prices were up 2.2% on the year but fell 3.6% from April.
• Housing continues to be a big sticking point: Shelter prices are up 5.4% on the year.

After the CPI report dropped but before the Fed rained on traders’ parade, interest rate futures jumped from 53% to 71% odds of at least one rate cut by the end of September, and from 52% to 69% odds of two cuts by year’s end, according to CME Group. The Fed’s announcement only slightly lowered those chances.

Looking ahead…the S&P 500 lost some post-CPI report gains but stayed up after JPow’s address, suggesting that traders are largely unwavering in their optimism that there will be more than one rate cut this year.—ML

Natural solutions are already better for the environment. But Med-X is taking it a step further: Their natural pesticides outperform chemical alternatives.

That’s already led to 200% revenue growth, thanks to commerce partnerships with companies like Walmart, Amazon, and Kroger. But they aren’t stopping there. You have a unique opportunity to join them as an investor as they scale into 41 global markets.

Perfect timing, since the $17b global pesticides market is projected to 3x in size by the end of the decade.

Now they’re planning to list on the Nasdaq (ticker MXRX).

But you don’t have to wait to invest. Become an early Med-X shareholder ahead of their planned Nasdaq listing.

Elon Musk’s $56 billion pay package is up for a vote. Tesla shareholders will vote today on whether to reinstate the CEO’s compensation package, which was okayed in 2018 but struck down by a Delaware judge in January—and it’s expected to be close. Musk and Tesla’s board have urged support for the measure, with Musk threatening to leave the company and develop important tech like AI elsewhere if it isn’t reupped. But major shareholders appeared divided going into the vote with some considering it too large, potentially giving a big voice to individual investors. Musk’s decision to reincorporate Tesla in Texas rather than Delaware will also be on the ballot.

Sony became the first movie studio to own a theater chain in 75 years. Sony Pictures said yesterday it had acquired Alamo Drafthouse, the seventh-largest cinema chain in the US. Although other studios own one-off theaters, from 1948 through 2020, studios were prohibited from owning theater chains under deals with the DOJ called the Paramount Consent Decrees that broke down the Old Hollywood studio system where the studios owned every aspect of the movie-making. With the decrees rescinded, Sony is now the first studio to get into the theater chain owning game as both studios and cinemas struggle with getting people to watch movies in theaters.

Basketball legend Jerry West died at 86. Even if you’ve never watched a single game, you’ve seen West play: His dribbling silhouette is the NBA’s logo (though the league has never officially admitted it). Born in West Virginia, West led the Lakers to multiple championships while playing on the team and as their general manager. He was a legendary figure on the court, known for his ability to play under pressure and through injuries—including nine broken noses. As a manager, he built out one of the most iconic Lakers rosters with Kobe Bryant and Shaquille O'Neal.

A trade war’s a-brewin’, and the EU just sailed right into its path. The bloc announced plans yesterday to impose tariffs on Chinese electric vehicles in a gambit that could upend a global automotive market increasingly reliant on China.

The tariffs, which will range from 17.4%–38.1% on top of an existing 10% duty, are a push by politicians to prevent ultra-cheap and popular Chinese EVs from flooding the market, echoing a move made by the US last month. Last year, an EU investigation found Chinese EV-makers benefited unfairly from government subsidies allowing them to sell cars for cheap, pricing out European-made EVs.

Unlike their US brethren, European carmakers didn’t want this. Despite what may seem like relief from competition, Mercedes-Benz, Stellantis, Volkswagen, and others oppose the tariffs because they need China more than they fear it. Many European auto companies either rely on the Chinese market for gas car sales or have crucial production plants in China, which would be threatened if the Chinese government follows through on its vow to retaliate.

The only thing green may be Europe’s envy…critics of the tariffs have questioned the EU’s decision considering its commitment to a carbon emissions-free future that necessitates a move away from gas-fueled cars.—CC

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Middle-school teachers will always remember the day Jake Paul’s body spray dropped. The 27-year-old YouTuber, boxer, and influencer is creating his own line of skin and hair care products called “W” (which stands for winning) to capitalize on the booming men’s grooming market.

The brand launched with body wash, body spray, and antiperspirant deodorant. All products will be under $10 and roll out at Walmart before becoming available on Amazon. Paul eventually wants to take over your bathroom with soaps, hair gels, and face wash. In an interview with The Hollywood Reporter, Paul said the idea for the line stemmed from a trip to CVS to buy deodorant and seeing limited options for guys. But:

• Over the last few years, the male grooming market has seen a massive influx of creams with genderless ingredients sold in masculine silver tubes to appeal to men.
• The market is expected to grow by 10% over the next four years to more than $100 billion, according to The Business Research Company.

No more big words. While the promo photos may target his audience of younger dudes, Paul’s branding is following the same playbooks that sell face goop and pit sticks to women: more “natural” products that tout paraben- and phthalate-free formulas.—MM

In Denmark, the search for those viral Buldak spicy ramen noodles is about to get harder as the government there recalled three flavors for being too spicy, saying their levels of capsaicin (the chemical compound that makes chili peppers burn) could cause “acute poisoning.” According to Samyang, the Korean company that makes the noodles and exports them globally, this is the first time they’ve been recalled for being too hot. Before you roast the Danes for preferring bland breakfast pastries, it’s worth noting that the original flavor comes in at 4,404 Scoville units, which is about 2x Tabasco sauce’s heat. And the noodle-maker is still on fire: Its stock rose 70% last year as it took in a record-high profit of $110 million while the global instant noodle market grew to $50 billion.