US inflation slowed to 2.5 percent in August, paving the way for a potential Fed rate cut. Federal Reserve Bank of Atlanta President Raphael Bostic faces ethical scrutiny over trading activities. Trump Media & Technology Group saw its stock tumble by over 75 percent from March highs. Meanwhile, Berkshire Hathaway sold over $7 billion in Bank of America shares, reducing its stake to 11 percent. All this and more on the September 12 edition of World Street.
US Inflation Slows
US price growth slowed again in August, reaching its lowest point since February 2021. With inflation easing, the consumer price index increased by 2.5 percent annually, down from 2.9 percent in July and below the 2.6 percent forecasted by economists. Month-over-month, prices rose by 0.2 percent, maintaining the same pace as July, as the Federal Reserve prepares for its first interest rate cut since the pandemic began.
Red Flags Raised
Raphael Bostic, President of the Federal Reserve Bank of Atlanta, violated ethic policies with his trading and investment activities, according to the Fed's internal watchdog. Despite these concerns, investigators found no proof that Bostic actually used insider knowledge or had any real financial conflicts. The investigation also revealed that Bostic occasionally failed to report securities transactions and holdings, or did not do so accurately, on his annual disclosure forms.
Waning Confidence
Shares of Trump Media & Technology Group, led by Donald Trump, fell as much as 17 percent on Wednesday morning. Though they recovered some ground, they still ended the day down 10.5 percent after Trump's debate with Kamala Harris. Despite being valued at roughly $3 billion following a surge earlier this year, TMTG has seen a sharp decline, losing over 75 percent of its value since its March high.
GameStop Revenue Drops
GameStop’s revenue dropped by almost one-third to $798.3 million in the July quarter compared to last year, as gamers increasingly opt for digital purchases and streaming over physical stores. However, the company reported a rare summer profit of $14.8 million, largely due to reduced costs from store closures and expense cuts.
Berkshire Sells $7 Billion of BofA Shares
Berkshire Hathaway, led by Warren Buffett, sold off more Bank of America shares, bringing total sales since mid-July to over $7 billion and lowering its stake to 11 percent. The company offloaded 5.8 million shares for $228.7 million over three days, with an average price of $39.45 per share, according to a regulatory filing. Berkshire now holds 858.2 million shares, or 11.1 percent of the bank's outstanding stock.
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