Good morning, CFOs. Fed Chair Jerome Powell keeps his wait-and-see stance on rates; the PCAOB is spared the ax as Senate passes tax bill; plus, car sales cool.

Federal Reserve Chair Jerome Powell kept his options open when he said steady economic activity was giving the central bank time to study the effects that tariff increases have on prices and growth before resuming interest-rate reductions.

“We’re simply taking some time,” Powell said Tuesday, repeating his earlier view. “As long as the U.S. economy is in solid shape, we think the prudent thing to do is wait and learn more and see what those effects might be.”

Powell spoke alongside central-bank leaders from Europe and Asia at a conference in Portugal hosted by the European Central Bank.

In recent weeks, investors have dialed up expectations that the Fed will cut rates at least twice in the second half of the year as inflation readings for April and May were milder than some economists expected. Powell said the Fed would likely have continued to gradually lower rates this year if not for concerns that tariffs might derail the last interval of officials’ recent fight to subdue inflation.

Powell declined to make any predictions for the Fed’s coming meeting at the end of the month and said the economic outlook would shape decisions. “I wouldn’t take any meeting off the table or put it directly on the table,” he said.

📈 Economic Indicators

ADP releases its National Employment Report for June.

The Public Company Accounting Oversight Board was spared from proposed elimination as the Senate on Tuesday passed a tax-and-spending megabill that no longer included the provision.

The Senate Banking Committee last week left out a previous provision to fold the U.S. audit regulator into the Securities and Exchange Commission in the draft text of the bill after the parliamentarian determined that including it violated rules. The Republican-led House in May passed the provision to eliminate the PCAOB as part of the broader bill.

"This is good news for millions of Americans whose retirement savings and investments would be put at risk by eliminating the PCAOB," Chair Erica Williams said.

Lawmakers could reintroduce the proposal at some point. The SEC could also replace the PCAOB's board members as it has done in recent years.

—Mark Maurer

The U.S. auto industry’s Trump bump was short-lived.

New-vehicle retail sales appear set to dip in June to the slowest pace in a year, a reversal from early spring when consumers raced to snap up new cars before tariffs kicked in.

General Motors, Ford Motor, Toyota and most other automakers reported their latest sales Tuesday, quantifying the latest twist in the industry’s roller-coaster ride since the Trump administration rolled out sweeping duties on imported cars and car parts.

• Paramount Global said it agreed in principle to pay $16 million to settle a lawsuit with President Trump over a “60 Minutes” interview with former Vice President Kamala Harris.
• Technology stocks fell Tuesday, weighing on a U.S. market coming off fresh record closing highs.
• Republicans squeaked President Trump’s tax-and-spending megabill through the Senate on Tuesday, capping a long night of dealmaking to win over holdouts and ending with a tiebreaking vote from Vice President JD Vance.
• U.S. manufacturing activity contracted for a fourth straight month in June, indicating continued uncertainty among firms surrounding tariffs and their effect on costs.

📰 Other headlines

• Constellation Brands Profit, Sales Decline Amid Softer Consumer Demand
• Warner Music to Cut Jobs as Part of Effort to Slash Costs by $300 Million
• Eurozone Inflation Hits 2% Target, Raising Chance of ECB Rate Hold
• JPMorgan Chase Ups Dividend, Approves $50 Billion Buyback After Stress Test
• Intralot to Acquire Bally’s International Interactive in $3.18 Billion Deal
• Lululemon Sues Costco Over Alleged Knockoff Activewear

Kirkland's, the Brentwood, Tenn.-based home-decor and furnishings retailer, named Andrea Courtois, most recently vice president of financial planning and analysis at women’s fashion retailer Francesca's, as senior vice president and chief financial officer, effective July 21. Mike Madden, who joined the company as finance chief in August 2022, is leaving to pursue other opportunities but will stay on in an advisory position until Aug. 15 to assist with the transition, the company said.

—Colin Kellaher contributed to today’s Ledger.

The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy.

Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew.

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