The Federal Reserve is getting fed up with high inflation.

At its last policy meeting, officials said rate hikes would be needed soon if price growth didn’t slow down, according to minutes released today. We have more news out of the Trump administration below, including new efforts to tame the bond market (which would make your debt cheaper) and a potential trade deal with Canada. But first, let’s dig into some new data showing how stubborn inflation can be. — Tony Wagner, newsletter editor  

There isn’t a whole lot of inflation data on the calendar this week. The most important inflation report — the one the Federal Reserve depends on — comes out next Wednesday, when the Bureau of Economic Analysis releases its personal consumption expenditures price index.

But on Tuesday, new data came out on the price of imported goods . Those prices in July were down 0.4% from the month before, according to the Department of Labor — mostly thanks to lower fuel costs.

But without the cost of energy, import prices rose. In fact, they were up 4.5% from the same time a year ago. It’s the biggest year-over-year increase since 2022. The most significant imports that are getting more expensive are capital goods.

“Particularly capital goods that are computers and semiconductors,” said Sarah House, senior economist with Wells Fargo.

House said that’s because of higher demand from data center construction. In fact, the price of imported computers has risen 17% over the past year.

“To put that in perspective, even at the height over the post-pandemic reopening supply chain stress, they were up only 4%,” House said. “So it does show just how insatiable appetite is for all things related to the AI buildout.”

Data center construction is also pushing up the price of imported metals, including copper and tin, and it’s driving the price of consumer goods higher, according to Menzie Chinn, a professor of economics and public affairs at the University of Wisconsin-Madison.

“If you have an increase in prices of semiconductors, that’s got to be fed into the chain of prices for all sorts of consumer good,” Chinn said. “I can’t even think if my coffee maker is without a chip.”

Sherwin Williams’ color of the year is “universal khaki,” which I guess is a better name than “greige.”

Grey-beige neutrals have taken over homes in recent years as part of what Dimri dubbed a “color recession.” When cars and houses are so expensive, a forest green truck and butter yellow kitchen are harder sells.

It’s hard to overstate anticipation for “Grand Theft Auto VI.” The video game brought in $1 billion worth of presales in an hour. 

“It is probably going to be the most valuable media property in the history of mankind,” one expert told our show last month.

That kind of hype has strange ripple effects, like a U.S. Army unit in Georgia that’s offering four days off to play for any member who reinlists between now and mid-November. The military has long used video games as a recruiting tool, but they’re usually endorsing games about warfighters, not Miami bank robbers.