WAGES ARE RISING BUT SO ARE PRICES — Our Megan Cassella: “Rising prices on everything from groceries to gasoline have eaten away the wage gains workers have seen since the start of the year, leaving most Americans earning less than they were before the pandemic began and derailing the White House’s argument that paychecks have grown under … Biden’s tenure. “Prices climbed 0.5 percent over the month from June to July, a slower pace than in recent months but still sizable enough that it outpaced the healthy wage gains workers across the income spectrum have received. As a result, real earnings decreased 0.1 percent over the month, government data shows. … It's the second straight month of year-over-year increases at that level, the biggest jump since 2008.” INFLATION STAYS HIGH — WSJ’s Gwynn Guilford: “Inflation remained elevated in July as the economic recovery continued, but prices showed evidence of cooling amid pandemic-related supply problems and signs that the recent rise in coronavirus infections is starting to crimp some business activity. … Consumer prices rose 5.4% in July from a year earlier, the same pace as in June, the highest 12-month rate since 2008, the Labor Department reported … “The weakening of price pressures in July from June isn’t necessarily a sign that the inflation fever of the past few months is breaking. ‘It’s like the equivalent of going from a 104-degree to a 101-degree fever—it’s still elevated. It’s just not as hot as what we saw in the prior three months,’ said Aneta Markowska, chief financial economist at Jefferies LLC. ‘There is still some pressure in the pipeline that should show up in the next few months.” DEMS BREAK WITH BANKS ON TAX REPORTING AMENDMENT — Our Kellie Mejdrich: “Senate Democrats … dealt a blow to banks as they blocked a GOP messaging amendment that opposed the creation of new tax reporting requirements for lenders. … “Banks have been gearing up to lobby against the plan. Lenders say that they support cracking down on tax evaders but that their participation would raise a variety of potential problems, including threats to privacy and data security, increased compliance costs and damage to customer relationships.” WARREN PLOTS CRYPTO LEGISLATION AFTER SEC PLEA — Also via Kellie: “Sen. Elizabeth Warren … said she would try to use legislation to strengthen cryptocurrency oversight after SEC Chair Gary Gensler called on Congress to bolster consumer protections. “The Massachusetts Democrat signaled her support as she released a Thursday letter from Gensler in which he said Congress should provide regulators with more authority to police crypto trading, lending and decentralized finance platforms. In the meantime, Gensler said the SEC “has taken and will continue to take our authorities as far as they go." JUDGE ORDERS TRUMP ACCOUNTANTS TO TURN OVER RECORDS — Our Josh Gerstein: “A federal judge has ruled that former President Donald Trump’s accountants must turn over two years’ worth of his tax and financial records to a House committee investigating whether Trump and his businesses profited from his service in the White House. “U.S. District Court Judge Amit Mehta … approved a House Oversight and Government Reform Committee subpoena for Trump’s records covering 2017 and 2018, but turned down most of the panel’s request for similar information dating back to 2011. The decision is likely to be appealed by Trump’s lawyers and could also be challenged by the House panel.” NYC MAYOR-TO-BE WILLING TO DEAL WITH AMAZON — CNBC’s Brian Schwartz: “Democratic mayoral nominee Eric Adams has privately signaled he's open to strengthening New York's relationship with Amazon and other tech giants if he wins election in November, according to people familiar with recent conversations he has had with business leaders. “Adams' openness to fostering stronger ties with Amazon comes as the e-commerce giant looks to expand its footprint in New York after a deal for a headquarters in Queens was scrapped in 2019. … Amazon bolted on the plan to build in the Long Island City section of Queens after strong resistance from progressive lawmakers, including Rep. Alexandria Ocasio-Cortez, D-N.Y. Amazon had promised to create at least 25,000 jobs, but critics said the company was getting too many tax breaks and was not involving the local community.” HOCHUL VOWS NEW TONE — NYT’s Luis Ferré-Sadurní: “In her first remarks since Gov. Andrew M. Cuomo announced his resignation, Lt. Gov. Kathy Hochul, the state’s governor-in-waiting, distanced herself from the embattled governor, while declaring she was prepared to lead New York through economic turmoil and an enduring pandemic. “Ms. Hochul stressed she had ‘not been close’ to the governor, saying she was unaware of the conduct outlined in a state attorney general report that found Mr. Cuomo had sexually harassed nearly a dozen women. Ms. Hochul said she would oust Cuomo staffers who acted unethically, signaling she would transform the workplace culture in the governor’s office, which the report had described as hostile and vindictive.” | 
