Happy Juneteenth! Since the BI Today team is off for the holiday, we're running an abbreviated version of the newsletter.
But we've still got time for a scoop! Meta's deal with Scale AI has left its Big Tech clients eager to distance themselves from the company.
In today's big story, the Fed is holding firm on interest rates as Fed Chair Jerome Powell waits to see the impact of Trump's tariffs. However, some people are already feeling them.
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The big story
Holding pattern
Stop me if you've heard this before: The Fed didn't cut interest rates as it waits to see the impact of tariffs.
For the fourth-straight time this year, the central bank chose not to adjust interest rates. And as was the case before, the impact of President Donald Trump's trade war was a key part of the decision, writes BI's Allie Kelly.
It's tricky to navigate for multiple reasons. First, the ultimate severity of the tariffs is unclear as negotiations are ongoing. Second, the financial data hasn't yet indicated notable price changes due to the trade war.
Still, Powell said he ultimately expects the cost of tariffs will fall to the consumer.
"We expect a meaningful amount of inflation to arrive in the coming months," Powell said Wednesday, adding, "Someone has to pay for the tariffs."
In some cases, it's already happening. (Much to the surprise of the customer.)
BI's Emily Stewart has a story on the sticker shock customers are getting when steep import bills arrive on their doorsteps.
Some people even questioned the legitimacy of the bills. A customer who purchased an $850 bag from Spain thought the text she got from UPS billing her $250 for the delivery was a scam, she told Emily.
It's led to a lot of finger-pointing about who is to blame. Retailers often say their websites explain — albeit oftentimes in the fine print — that import duties are the customers' responsibility.
Carriers like UPS and FedEx say they are just passing the bill they had to pay to the US government on to the buyers.
Meanwhile, buyers are left frustrated with additional fees they often weren't aware of ahead of time. What's worse: Even if they return the item, they're still on the hook for the tariff bill.
In other news
- AI runs on dirty power — and the public pays the price.
- CEOs are trying to warn you: Use AI or else
- Apple, Siri, and the booted blogger: A Conversation with John Gruber.
- F1's CEO says the job comes with 'no holiday.' He explains how he stays calm under pressure.
- Sneaker loafers, a hot new shoe trend, toe the line between fashionable and geriatric.
- Looking for a sign to put off buying an engagement ring? This just might be it.
- A Chinese herbal-medicine stock with no revenue has surged 60,000% this year. 5 things to know about the company's mysterious spike.
- Microsoft turned me down twice. Here's what I did differently the third time to get the job.
- CEOs haven't felt this gloomy about the economy since the pandemic.
The Silicon Valley leaders who have experimented with psychedelics.
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York City. Hallam Bullock, editor, in London. Akin Oyedele, deputy editor, in New York. Ella Hopkins, associate editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York.