First up today, the minutes from the Federal Reserve’s July meeting show several officials support a 0.25 percentage point rate cut due to declining inflation and rising unemployment. Revised job data also indicates the economy added 818,000 fewer jobs than previously thought. Federal Reserve Chair Jerome Powell stated progress on slowing inflation but did not commit to an immediate rate cut.

In related news, revised job growth figures have impacted consumers by keeping interest rates high, leading to increased financial strain, especially on lower-income individuals. These consumers have nearly maxed out their credit limits and hold less in savings compared to higher earners.

Shifting gears, U.S. Bank and Edward Jones will expand their partnership starting in late 2025 to include new co-branded credit cards and deposit products. This builds on their existing relationship and aims to improve clients' financial experiences.

Next, Mastercard plans to lay off about 1,000 employees, approximately 3% of its workforce, due to organizational restructuring focused on diversification and AI integration. The company aims to redeploy resources into growth areas, including digital technology and cybersecurity.

In AI news, startup Anthropic faces a copyright infringement lawsuit from three authors alleging their works were used without permission to train the large language model, Claude. This lawsuit highlights the ongoing tension between AI development and intellectual property rights, with similar legal battles involving OpenAI and Microsoft.

Finally, the rise of shadow banking has led traditional financial institutions to enhance their know-your-customer and risk management practices. This comes as lending to these lightly regulated FinTechs reaches over $1 trillion, posing potential risks to lenders if financial trouble arises.