Aug 30, 2018

U.S. inflation hits six-year high as consumers keep spending

Photo: Thomas Trutschel/Photothek via Getty Images

Consumer spending grew 0.4% in July, the sixth straight month of gains, while the Federal Reserve's preferred measure of inflation reached a six-year high of 2.3% annualized gain, according to the Bureau of Economic Analysis.

Why it matters: The strong spending numbers indicate that consumers are continuing to drive growth, as personal consumption expenditures (PCE) account for 70% of the U.S. economy, per Bloomberg. Inflation was slightly higher than the Fed's target threshold of 2%, all but guaranteeing that it will continue with its plan to gradually raise interest rates.

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Acting Navy secretary resigns over handling of virus-infected ship

Thomas Modly. Photo: Chip Somodevilla/Getty Images

Acting Navy Secretary Thomas Modly resigned Tuesday after apologizing for comments he made about Capt. Brett Crozier, who was removed when a letter he wrote pleading with the Navy to address the coronavirus outbreak aboard the USS Theodore Roosevelt was leaked to the press. The resignation was first reported by Politico.

Why it matters: The controversy over Crozier's removal was exacerbated after audio leaked of Modly's address to the crew, in which he said Crozier was either "too naive or too stupid to be a commanding officer of a ship like this." After initially backing Modly's decision, President Trump said at a briefing Monday that he would "get involved."

Go deeperArrowUpdated 4 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 4 p.m. ET: 1,407,123— Total deaths: 81,103 — Total recoveries: 297,934Map.
  2. U.S.: Total confirmed cases as of 4 p.m. ET: 386,800 — Total deaths: 12,285 — Total recoveries: 20,191Map.
  3. Federal government latest: Trump removes watchdog overseeing rollout of $2 trillion coronavirus bill — Senate looks to increase coronavirus relief for small businesses this week
  4. Public health latest: Testing capacity is still lagging far behind demand.
  5. World latest: China reopens Wuhan after 10-week coronavirus lockdown.
  6. Wisconsin primary in photos: Thousands gathered to cast ballots in-person during the height of the coronavirus crisis in the U.S.
  7. What should I do? Pets, moving and personal health. Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

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America's food heroes

Photos: Charlie Riedel/AP (L); Brent Stirton/Getty Images

The people who grow, process and keep food stocked on shelves are doing heroic work in these conditions, often for bottom-barrel pay.

Why it matters: Millions of Americans don't have the luxury of working from home, and it's essential that food workers keep working so we can keep eating.

Go deeperArrow20 mins ago - Health