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1. US middle class takes cost-saving measures amid inflation
Inflation in the U.S. has remained high for about five years now, and the country's middle class is growing tired of high prices, the Wall Street Journal reports. Costs and goods are 25% higher than they were in 2020, which is leading this segment of the American economy to cut back on spending.
Companies such as Wingstop and Target have reported a cutback in spending from those in the middle class. A consumer sentiment survey conducted by the University of Michigan showed that 44% of middle-income respondents believe their financial situation is worse than it was last year.
“People feel like their living standards are falling behind,” said Stefanie Stantcheva, a Harvard economics professor who has studied the psychology of inflation.
2. Fears of an AI bubble persist
Artificial intelligence industry insiders fear there are some concerning trends when it comes to AI investments, and it's hard to know what the damage would be if the market were to crash, the New York Times reports. While the companies at the top of the chain are increasing their overall values, turning an actual profit on these products remains to be seen.
Google, Microsoft, Amazon and Meta have spent $360 billion on new data centers and can afford to take a short-term hit as their AI products mature, but smaller companies will have to take on debt to fund projects that might not turn a profit for several years — if they ever do.
"Because that debt is held by a wide array of financial institutions — including private credit lenders as well as traditional banks — experts are struggling to understand how much risk is in the system," the Times reports.
3. US hotel companies push for all-inclusive Caribbean properties
Hoteliers continue to seek all-inclusive development opportunities in the Caribbean, with more and more U.S. hotel brands prioritizing their market share in the region, CoStar News' Natalie Harms reports.
Paula Cerrillo, vice president of development in the Caribbean for Marriott International, said U.S.-based hotel brands should emphasize growing their portfolios in the region to further push the all-inclusive model.
"I think most people still don't understand the U.S. customer — a big percentage [of them] haven't vacationed in an all-inclusive place," Cerrillo said. So, once hotels "start opening properties under the American brands, because right now it's still very little, we start bringing more properties in the Caribbean."
4. Air-traffic controllers get bonus
The U.S. Transportation Department said it will pay air-traffic controllers and technicians who had perfect attendance during the 43-day government shutdown a $10,000 bonus to compensate their efforts, the Wall Street Journal reports. The 776 workers who will receive the bonus didn't receive any paychecks during the duration of the shutdown.
Transportation Secretary Sean Duffy said they may penalize federal aviation employees who called off work during the shutdown.
“We’re going to look at the ones who, when the shutdown first happened, they just started calling out sick right away, and they didn’t come in to work over the course of that 43 days,” Duffy said. “Those ones we’ll look at.”
5. Travel bans will bar Haitians from attending World Cup
Haiti qualified for the 2026 FIFA World Cup for the first time since 1974 last week, but travel bans imposed by the U.S. government won't allow fans from the country to attend any matches in the United States, The Athletic reports.
U.S. President Donald Trump signed a travel ban against 12 countries in June, including Haiti, citing the protection of national security.
A State Department spokesperson said every World Cup ticket holder will have a chance to schedule a visa appointment but warned they must “demonstrate they qualify for the visa and plan to follow U.S. laws and leave the United States at the end of the tournament.”