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As the Federal Reserve and other central banks move away from providing advance guidance on interest rate decisions, finance leaders are being encouraged to adopt more agile forecasting and treasury strategies to manage borrowing costs and protect profitability. With U.S. interest rates remaining at 3.50%–3.75%, headline inflation at 4.2%, and policymakers making decisions based on incoming economic data rather than long-term guidance, traditional annual budgeting has become less effective. CFOs are advised to replace static budgets with rolling 12-month forecasts, expand the use of automation to improve financial analysis and decision-making, and strengthen capital structures by managing floating-rate debt exposure and maintaining liquid cash reserves. It argues that organizations with flexible forecasting, integrated financial data, and resilient balance sheets will be better positioned to navigate an increasingly uncertain interest rate environment.

 

The CFO

OpenAI has responded to Apple's recent trade secret lawsuit, asserting that the allegations lack merit. In a statement shared by Bloomberg reporter Ed Ludlow, OpenAI emphasized: “While we take these allegations seriously, we're not aware of any evidence that this complaint has merit.” Apple claims that OpenAI employees, including chief hardware officer Tang Tan, who previously worked at Apple, engaged in a coordinated effort to acquire confidential information. The 41-page complaint, filed in the U.S. District Court for the Northern District of California, alleges that OpenAI used Apple’s proprietary information in developing its own hardware. Reports indicate that OpenAI is working on a mobile, screen-free smart speaker that could compete with Apple’s products.  

 

Techcrunch

The Federal Reserve's latest Beige Book showed that U.S. economic activity expanded at a slight to moderate pace in recent weeks, with employment remaining largely stable and wage growth continuing at a modest to moderate rate across most regions. The report found that consumer prices continued to rise at a moderate pace, with businesses citing both the conflict in the Middle East and tariffs as drivers of higher costs, while consumers became increasingly price sensitive. The Fed said inflation expectations remain mixed, with some businesses anticipating price pressures to persist and others expecting inflation to ease as fuel prices decline. Regional reports highlighted strong tourism in New York City during the FIFA World Cup, continued investment in AI, data centers, and defense manufacturing in Philadelphia, improving transportation demand in Atlanta, resilient housing demand in Cleveland, and stronger staffing demand in Dallas. Overall, business contacts expect the U.S. economy to continue expanding, although uncertainty over energy costs remains a key risk to the outlook. 

 

Bloomberg

CNBC

U.S. producer price inflation was softer than expected in June, with core producer prices, excluding food and energy, rising 4.7% year over year, below economists’ forecasts, while overall wholesale inflation slowed as a 12% decline in gasoline prices helped reduce pipeline cost pressures. The report showed broad-based cooling across energy, transportation, warehousing, and food prices, reinforcing signs that inflation is moderating and giving the Federal Reserve greater scope to delay further interest rate increases, although renewed geopolitical tensions in the Middle East could reignite price pressures. Several components that feed into the Fed’s preferred inflation measure, the Personal Consumption Expenditures (PCE) price index, were mixed, with June PCE data due later this month.

 

Bloomberg

CNBC

US News and World Report

Wall Street Journal

Uber is in advanced negotiations to acquire Germany's Delivery Hero in a deal that could value the food delivery group at more than €12bn ($13.7bn), as the ride-hailing company seeks to strengthen its international position against rival DoorDash. Delivery Hero confirmed it is in discussions following reports that Uber is considering an offer of around €40 per share, above its previous €33-per-share approach and close to the company's latest market value of €11.9bn. Uber already owns a 24.99% stake in Delivery Hero, with derivatives taking its total economic interest to around 36.8%. Any transaction would significantly expand Uber's presence across more than 60 markets but is expected to face close scrutiny from competition regulators given the companies' overlapping operations in parts of Europe and the Middle East.

 

Bloomberg

Reuters

Wall Street Journal

The New York Fed's Empire State Manufacturing Index rose to 15.6 in July, from 5.7 a month earlier, comfortably exceeding economists’ forecast of 9.3, and signaling a stronger-than-expected improvement in manufacturing conditions across New York State. The reading, which is well above zero, points to accelerating business activity and suggests continued momentum in the sector, providing a potentially positive signal for the U.S. dollar. 

 

Investing

Starbucks is facing renewed scrutiny over its long-term commitment to Washington state after internal briefing documents revealed state officials were concerned the company's planned 2,000-employee corporate office in Nashville could signal a gradual shift in its operational focus. While Starbucks has repeatedly stated that Seattle will remain its global headquarters, the documents noted that staffing at its Seattle headquarters has fallen about 25%, to roughly 2,800 employees from around 3,750 in 2023, following layoffs and restructuring under chief executive Brian Niccol. The briefing, prepared ahead of a meeting between Washington Gov. Bob Ferguson and Niccol, highlighted concerns over the state's business climate, including higher business taxes and a new 9.9% tax on high earners, which could affect executive recruitment and retention.

 

The Seattle Times

For over a decade, technology futurists predicted that AI would disrupt the tax, accounting, and audit sectors. While AI is indeed transforming how tax professionals operate, it has not led to significant job losses. According to the 2026 Future of Professionals report, 27% of tax and audit professionals in the U.S. would decline job offers from firms lacking AI tools. However, a gap is emerging between firms that have adopted AI and those that have not, with 41% of respondents lacking access to these tools. This disparity could lead to talent retention issues, as replacing a trained professional can cost upwards of $232,000. Additionally, 78% of corporate clients expect AI-enabled improvements, yet only 6% report receiving them. As firms adopt AI, they can enhance productivity and client satisfaction, but inconsistent execution of AI strategies poses risks. Elizabeth Beastrom, president of Thomson Reuters Tax, Audit & Accounting Professionals, emphasizes the need for a firm-wide AI strategy to maximize benefits and minimize risks.

 

Accounting Today

Americans' confidence in Big Tech has fallen to its lowest level since Gallup began tracking the sector in 2020, with just 20% expressing a great deal or quite a lot of confidence in major technology companies and 41% saying they have very little or no confidence. The decline comes amid growing concerns over artificial intelligence, privacy, child safety, market power, and job cuts across the technology sector, with trust differing sharply by political affiliation. The findings are part of Gallup's latest survey of confidence in major U.S. institutions, which found overall trust remains near a record low, with only 27% of Americans expressing confidence in the country's leading public and private institutions. Gallup said confidence has weakened across most sectors in recent years, reflecting increasing political polarization and public concerns over the performance of government, business, media, and other major organizations.

 

US News and World Report

Republican lawmakers face diminishing prospects of advancing several outstanding tax proposals before the November midterm elections, despite months of legislative work and bipartisan support for some measures. After enacting most of their major tax priorities through the One Big Beautiful Bill Act in 2025, Congress has made little progress on additional initiatives covering cryptocurrency taxation, capital gains, taxpayer rights, gambling deductions, and retirement savings, with many now expected to be deferred until the post-election lame-duck session. Several proposals have stalled despite bipartisan backing. A package to modernize IRS operations and strengthen taxpayer rights has yet to advance, while legislation to restore the full deduction for gambling losses and bills to adjust capital gains taxation have also failed to gain traction. Efforts to establish new tax rules for digital assets have slowed amid increased political scrutiny of President Donald Trump's cryptocurrency holdings, potentially reducing Democratic support for further legislation.

 

Tax Notes

In the aftermath of natural disasters, fraudsters exploit vulnerable individuals seeking help. A 2025 survey by The Harris Poll revealed that 37% of Americans experienced financial fraud post-disaster. Howard Silverstone, CPA/CFF, emphasizes the need for skepticism, stating: “We're in an era now where you simply cannot trust everything you see or hear.” Common fraud types include charity fraud, contractor fraud, insurance fraud, and identity theft. Accountants can play a vital role in educating clients on recognizing red flags and verifying information. Silverstone and Elizabeth Woodward, CPA/CFF, recommend strategies such as verifying charities, checking contractor credentials, and promoting disaster preparedness plans. As technology evolves, so do fraud tactics, making it crucial for clients to remain vigilant and informed.

 

Journal of Accountancy

AICPA has issued Statement on Auditing Standards (SAS) No. 150, External Confirmations, updating audit requirements to reflect the growing use of digital technologies and third-party intermediaries in obtaining audit evidence. The revised standard introduces a new requirement for auditors to perform external confirmation procedures for cash and cash equivalents held by third parties unless specified exceptions apply, while also recognizing direct access to information from knowledgeable external sources as an acceptable alternative in certain circumstances. The standard also updates guidance on the use of intermediaries in external confirmation procedures and establishes new conditions for using negative confirmation requests. SAS No. 150 becomes effective for audits of financial statements for periods ending on or after December 15, 2028, with early adoption permitted.

 

Journal of Accountancy