Good morning, CFOs. GDP expanded 3.3% in the second quarter thanks to a booming AI sector; Federal Reserve governor Lisa Cook sues President Trump; plus, Hormel to raise prices. Reminder, the Morning Ledger will take a Labor Day break on Monday and return on Tuesday.

The U.S. economy grew at a faster pace than previously thought in the second quarter, helped by healthy consumer spending and signs of spending on the booming AI sector.

Gross domestic product expanded at a seasonally and inflation-adjusted annual rate of 3.3% in the quarter, the Commerce Department said in an updated estimate Thursday. The department had previously said the economy grew by 3%. The economy’s growth reflected in part a drop in imported goods after companies front-loaded purchases earlier in the year to get ahead of new tariffs. Trade can cause swings in quarterly growth because of the way GDP is calculated.

The latest estimate changed because of revisions to investment and consumer spending, the Department said. Investments in intellectual property, light trucks and commercial and healthcare structures were all revised upward. Revisions, while a routine part of all major economic data, have been more closely watched in recent months as economists, policymakers and investors hunt for clues to the direction of the economy.

📆 Earnings

• Alibaba

📈 Economic Indicators

The BEA releases the personal consumption expenditures price index for July.

The University of Michigan releases its final estimate for its August Index of Consumer Sentiment.

The Public Company Accounting Oversight Board postponed implementation of tighter rules on auditors' quality controls following pushback from audit firms.

The rule will take effect on Dec. 15, 2026, instead of Dec. 15 this year, the audit watchdog said. The PCAOB adopted the rule in May 2024,  followed by Securities and Exchange Commission approval. Firms will have to assess the risks associated with achieving effective quality controls and design procedures intended to address those risks.

The Center of Audit Quality, which represents firms that audit public companies, asked to delay the implementation to allow firms more time to prepare.

The SEC, which oversees the PCAOB, is seeking candidates for all five board seats, including the chair. Erica Williams resigned as PCAOB chair last month at the request of SEC Chairman Paul Atkins.

—Mark Maurer

Federal Reserve governor Lisa Cook sued President Trump on Thursday, seeking to block his move to fire her from the central bank, in an unprecedented legal battle testing the president’s power over the independent central bank’s seven-member board.

The lawsuit filed in Washington, D.C., federal district court alleges Trump violated the law by attempting to remove Cook from her post without a valid reason.

In announcing his move on Monday to fire Cook, Trump cited allegations that she submitted fraudulent information on mortgage applications. Bill Pulte, a Trump appointee who leads the Federal Housing Finance Agency, publicized the allegations and referred them to the Justice Department. Cook hasn’t been charged with any civil or criminal violation.

• Who is Lisa Cook? The Fed Governor at the Center of a Firestorm
• Exclusive: Trump Fires Board Member of Regulator Weighing Rail Merger

📰 Other headlines

• S&P Hits a Record; Nvidia Slips After Earnings
• With Outcome Uncertain, UAW Claims Battery Plant Win
• Chinese Money Launderers Are Moving Billions Through U.S. Banks
• Heard on the Street: Even Nvidia Has Speed Limits
• Stada Eyes IPO in Autumn if Conditions Are Right
• Higher Prices Are Coming for Household Staples
• Trump Leans on National Security to Justify Next Wave of Tariffs
• Sorry Europe, American Luxury Brands Are In

📈Earnings wrapup

• Hormel to Raise Prices, Citing Costlier Pork, Beef and Nuts
• Brunello Cucinelli Logs Higher Profit as Clients Splurge on New Collections
• TD Bank, CIBC Results Echo Peers Buoyed by Lower Credit-Loss Provisions
• Greif Looks to New Sectors, Deals to Offset Industrial Packaging Slump
• Dick’s Sporting Goods Lifts Outlook as Sales Climb
• Dollar General Draws Shoppers Across Income Levels, Raises Outlook
• Ulta Beauty Lifts Fiscal-Year Guidance as Second-Quarter Profit, Sales Rise

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.

You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.