CNBC's Rick Santelli reports on the latest economic data to cross the tape.

Washington

Recent economic data indicates that core inflation increased to 2.7%, slightly higher than expected. Personal income fell by 0.4%, marking the first negative result since 2021, while personal spending and real spending also declined.

The core year-over-year inflation rate remains above the Federal Reserve's 2% target, suggesting persistent inflationary pressures. Treasury yields showed notable movement over the week, reflecting market reactions to the data and ongoing expectations regarding Federal Reserve policy.

Core inflation rate rose to 2.7% in May, personal income falls

Personal income and spending numbers for the May plus the Fed's favorite inflation gauge PCA, PCE data, Treasuries, Rick Santelli Let's do it Rick. Tell us what you got. Yes, May income spending and all the inflation numbers and there are surprises here. Personal income, which really has been quite strong throughout 2025 takes a bit of a hit here down four-tenths. We were looking for a number up three to four-tenths This would be the first negative number going all the way back to what? September of 21 and that's where we comp this to SEP of 21 when we were minus six-tenths. Now if we look at Spending, spending was down one-tenth We were expecting up one-tenth that equals where we started the year at down one-tenth to find a bigger negative number you're going in the way back machine to Feb of 21 Feb of 21 now if we look at real spending, of course It's going to take a bit of a ding question is how much down three-tenths? We're expecting this to be near unchanged. This would be the second negative number on real income spend Excuse me real spending We started out the year down half a percent before we really jumped up in March to up seven-tenths to somewhat negate it So down three-tenths would be comping to the very beginning of this year now to the inflation data if we look at the PCE on a month-over-month basis exactly as expected up one-tenth in the rearview mirror up 110 the best that we had this year was unchanged in March if we look at the year-over-year PCE we are at two point three exactly as expected in the rearview mirror 2.1 now becomes 2.2. So there is an extra tenth of heat in the rearview mirror now year-over-year Excuse me core numbers. These are probably the most important on the month-over-month core up two-tenths That's one-tenth hotter than expected One-tenth hotter than the rearview mirror and and it basically would come to Where we were in the beginning of the year February were up half a percent and finally two point seven That's the core year-over-year. I know Becky was talking about it earlier This is most likely what most are gonna really concentrate on It's one-tenth hotter at two point seven than we were expecting at two point six and in the rearview mirror There was an upgrade from two point five to two point six So there is a stickiness here and this stickiness has remained for quite a long time. We have made progress Things aren't really necessarily getting worse Although a couple of tents here and there on revisions But I guess the real issue to take a step back is it still doesn't look like 2% is in the crosshairs And that's the feds, you know amount that's their target for some of these numbers interest rates big moves on the week Not on the day at 426 right now in a 10-year. We're up to on the day, but on the week Remember that what we have in a 10-year right now. We closed last week at 438 we're at 425 426 and in the two-year we closed last week at 391 we're currently 327 at 372 373 so you can see there has been almost a 20 basis point move on the short end and the curve steepening Well that probably is because of this notion of a pre announcement on the Fed chairman

The U.S. Department of Justice issued subpoenas in its investigation into New York Attorney General Letitia James. CBS News' Jake Rosen reports.

New York

Trump's DOJ subpoenas New York AG Letitia James

Vladimir Putin and Donald Trump will meet in the coming days, the Kremlin said on Thursday (August 7), as the U.S. president seeks a breakthrough to end the Ukraine war after voicing mounting frustration with his Russian counterpart and threatening him with new sanctions.

Moscow

Ukraine Invasion

Kremlin says Trump, Putin to meet soon; Ukraine seeks role for Europe

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Trump deadline for Russia to reach ceasefire arrives

Protesters in Israel are voicing their concerns about a plan approved by Prime Minister Benjamin Netanyahu's Security Cabinet to take over Gaza City. CBS News' Debora Patta has more.

Jerusalem

Middle East Conflict

Israel's security cabinet approves plan to take over Gaza City

Israeli Prime Minister Benjamin Netanyahu says Israel intends to take full military control of Gaza and push a new offensive, despite mounting international criticism over the war’s human toll and growing hunger crisis.

Israel intends to take full control of Gaza, Netanyahu says

U.S. President Donald Trump said that there is a good chance he'll meet with Russian leader Vladimir Putin soon over Russia's war with Ukraine.

Trump says 'good chance' he'll meet with Putin soon

U.S. President Donal Trump officially began levying higher import taxes on dozens of countries on Thursday (August 7), just as the economic fallout of his months-long tariff threats was beginning to create visible damage to the U.S. economy.

Global Tariffs

Higher U.S. tariffs officially take effect

The man accused of killing two Israeli Embassy staffers in Washington, D.C., earlier this year has been charged with federal hate crime charges. CBS News Justice reporter Jake Rosen has more.

Hate crime charges filed in killings of Israeli Embassy staffers

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Sean "Diddy" Combs' attorney says he hasn't had talks about a pardon

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U.S. Ambassador to Israel faces questions over starvation in Gaza

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U.S. begins collecting Trump's new global tariffs

Brazil’s President Luiz Inacio Lula da Silva says he plans to call the leaders of China and India, to discuss a joint response to new US tariffs. The announcement came as Brazil and India were hit with 50 percent levies - the highest imposed by President Donald Trump.

State of Rio de Janeiro

Brazil halts U.S. trade talks as Lula condemns new tariffs

U.S. President Donald Trump imposed an additional 25% tariff on Indian goods, citing New Delhi's continued imports of Russian oil in a move that sharply escalated tensions between the two nations after trade talks reached a deadlock.

Trump imposes extra 25% tariff on India over Russian oil imports

President Trump has been briefed about the shooting at Fort Stewart in Georgia, the White House press secretary says. At least five soldiers were shot before a suspect was apprehended, officials say.

Fort Stewart

Five soldiers shot at Fort Stewart in Georgia; suspect apprehended

A Russian official said President Trump's special envoy to the Middle East, Steve Witkoff, had a "useful and constructive" conversation with Russian President Vladimir Putin in Moscow on Wednesday.

Witkoff, Putin had 'useful and constructive conversation'

The U.S. aims to deploy nuclear power reactors on the Moon and Mars, targeting the first launch by decade’s end. A new NASA directive, revealed by Politico and AFP, calls for appointing a nuclear power czar to choose two commercial proposals within six months, aiming to outpace a Chinese-Russian collaboration.

NASA races to put nuclear reactors on Moon and Mars

Japan held a memorial service and ceremony for victims and the remaining survivors of the U.S. atomic bombing of Hiroshima, marking its 80th anniversary and renewing pledges of working towards a world without nuclear weapons.

Hiroshima

Hiroshima marks 80th anniversary since U.S. atomic bombing

The U.S. is warning travelers as cases of chikungunya, a mosquito-borne illness, spreads in China. Health officials in China have ordered mass disinfection measures. The region near Hong Kong reported more than 7,000 cases in recent weeks.

Beijing

U.S. warns travelers as cases of chikungunya increase in China

Japan has commemorated the 80th anniversary of the Hiroshima atomic bombing during World War II. Ceremonies at Peace Memorial Park honoured the victims of the 1945 nuclear attack by US forces.

Japan’s Hiroshima marks 80 years since U.S. atomic bombing

Multiple media outlets in Israel have reported that Israeli Prime Minister Benjamin Netanyahu wants a complete military takeover of Gaza, while almost 600 former Israeli military and security officials are petitioning Washington to stop the fighting.

Netanyahu reportedly wants complete Gaza takeover

Ukrainian President Volodymyr Zelenskyy said Tuesday that he had a productive talk with President Trump focused on ending the war with Russia. CBS News national security contributor Samantha Vinograd has more.

Kyiv

Zelenskyy holds 'productive talks' with Trump about war

Family members of two of the victims from the 2023 implosion are demanding tougher regulations following the damning report released on Tuesday. Five people died when the submersible imploded off the coast of Newfoundland.

Deadly Titan submersible disaster was preventable, Coast Guard says

The House Oversight Committee has subpoenaed multiple people over the Jeffrey Epstein files, including former President Bill Clinton and former Secretary of State Hillary Clinton. CBS News' Jake Rosen has more details.

House committee subpoenas Clintons, others over Epstein files

U.S. Customs and Border Patrol agents have been directed through a federal court order to stop deportations under President Trump's asylum ban, sources say. CBS News' Camilo Montoya-Galvez has more details.

Court blocks deportations under Trump's asylum ban, sources say

A man suspected of murdering four family members in Tennessee has been captured after a four-day manhunt, authorities said. CBS News' Nicole Valdes has more.

Jackson

Suspect arrested in murders of 4 Tennessee family members

The ruling comes a month after Brazil’s top court ordered the former president to wear an ankle monitor, submit to a curfew and abide by limitations on his activity as legal proceedings investigating an alleged coup plot continue.

Brazil's Supreme Court orders house arrest of Bolsonaro

The US and Lebanon have been holding talks on a roadmap to fully disarm Hezbollah. Lebanon's new leadership has pledged to extend its authority across all its territory but has so far avoided acting against Hezbollah.

Beirut

Lebanon faces renewed pressure to disarm Hezbollah

CBC News had exclusive access to a Canadian Armed Forces plane that dropped about 10,000 kilograms of humanitarian aid into Gaza, the first time Canada joined the airdrop operations. Several countries airdropped food on Monday, but aid organizations agree they are more symbolic than effective.

Breakdown