The purchasing power of American millionaires is half of what it was 30 years ago
The traditional perception of a millionaire as a person with unlimited wealth no longer corresponds to reality in the USA, despite a record number of people achieving this status. There are now 23,931,000 millionaires in the USA, and this increase is explained by inflation, rising housing costs, and active participation in the stock market. Financial experts note that a million dollars today provides financial security, but is not a 'golden ticket' to luxury, as the purchasing power of $1 million has significantly decreased compared to 30 years ago. Being a millionaire in the USA means belonging to a new mass affluent middle class.
The Fed will refrain from lowering the rate until 2026
FT predicts that the U.S. Federal Reserve will keep the interest rate at the current level despite the impacts of trade policy. Most FOMC members are ready for one minor easing only in 2026, justifying the decision by expecting signs of weakness in the labor market and stabilization of inflation.
The U.S. Congress is already discussing a possible shutdown two months earlier
Leaders of both parties are accusing each other of threatening a government shutdown, which could happen as soon as September 30. Republicans are trying to implement cuts to foreign aid and broadcasting funding, but Democrats do not like the scale of the budget decisions.
South Africa is preparing a deal with the USA – deadline August 1
In Johannesburg, a trade agreement with the USA is being discussed ahead of the August 1 deadline when a 30% tariff on South African goods is planned to be implemented. Proposals include purchasing liquefied natural gas, simplifying chicken imports, and investing $3.3 billion in American industry. The rand remains stable, and a decision from the central bank regarding a rate cut is expected.
France demands exemption of its wines from U.S. tariffs of 15%
According to the publication, the trade agreement reached between the USA and the EU, announced on Sunday, 'caused panic' in Brussels and Paris regarding which types of goods may be excluded from the list of products subjected to new American tariffs. FT sources in the EU added that negotiations are currently ongoing, including the issue of excluding alcoholic beverages from the list of taxed goods. 'However, U.S. officials said there will be no exceptions for spirits and wines, including champagne,' the publication writes. According to another source from the newspaper, the topic of wines is still under discussion. FT notes that about 30% of French alcoholic exports go to the USA. France's initiative to secure an exemption for wines has also been supported by Italy.
U.S. economy: GDP recovery, but with deep nuances
A survey of economists shows that U.S. GDP grew by 2.4% annualized in the second quarter after a decline of 0.5% in the first quarter. However, due to trade imbalances and policy ambiguity, it is difficult to assess the real picture. The forecast for the whole year is around 1.5%.
Oil halted its rise due to Trump's tough ultimatum to Russia
Oil prices stabilized after a sharp rise of 3%. Investors are reacting to Trump's statement about new sanctions against Russia if a ceasefire is not achieved within 10-12 days. A potential threat is secondary tariffs on oil trade.
China promises support for the economy and control over anti-competitive business behavior
At the meeting of the Politburo of the PRC, support for the market was announced through fiscal stimulus and monetary flexibility. It was separately emphasized the need to curb anti-competitive behavior of companies and reduce overproduction in key sectors to combat deflation.
Trump is ready to allow Ukrainian refugees to stay in the USA until the end of the war
U.S. President Donald Trump stated that he is considering allowing Ukrainian citizens who fled due to the war to remain in the United States until the fighting ends. This decision has received significant reaction among the Ukrainian diaspora and American human rights advocates.
The budget session of the Verkhovna Rada of Ukraine concerns army funding
Chairman of the Verkhovna Rada Ruslan Stefanchuk reported that on July 31, the parliament may consider a draft law on amendments to the state budget for 2025 concerning support for the Armed Forces of Ukraine — a key decision amid the war.
A powerful earthquake near Kamchatka: tsunami threat in the USA, Japan, and Russia
An earthquake of magnitude 8.8 occurred off the coast of Kamchatka on the night of July 30. According to the U.S. Geological Survey, the earthquake occurred approximately 136 kilometers from the eastern coast of Kamchatka at a depth of 19.3 kilometers. USGS notes that this earthquake is the strongest in the world since the Fukushima disaster in March 2011, and only five earthquakes have surpassed it since monitoring began.
A tsunami warning has been issued for the Aleutian Islands in Alaska and the Hawaiian Islands of the USA. In Hawaii, authorities have ordered the evacuation of some areas.
A tsunami warning is also in effect for coastal areas of Japan. The country's meteorological agency warned of potential waves up to one meter high.
From the Kuril Islands of Russia, 2,700 people have already been evacuated. Due to the waves raised after the earthquake, the port in Russian Severo-Kurilsk is partially flooded. A tsunami of 3-4 meters was recorded in the Elizovsky area of Kamchatka.
News in brief
Russians struck a training ground of the Armed Forces of Ukraine. Three soldiers are reported dead and 18 wounded.
The enemy has advanced near several settlements in Donetsk Oblast – DeepState.
In Kyiv region, dozens of officials have been announced as suspects for losses to communities exceeding 48 million UAH.
Families of military personnel killed in captivity will receive 15 million UAH.
Trump wants to allow Ukrainian refugees to remain in the USA until the end of the war.
The Canadian government may recognize the statehood of Palestine, reports CBC News citing sources.
The National Bank of Ukraine plans to withdraw 10 kopeck coins from circulation starting October 1.