“Time is the friend of the wonderful business, the enemy of the mediocre.” — Warren Buffett

1. Warsh Floats Cut in Number of Fed Rate-Setting Meetings — Federal Reserve Chairman Kevin Warsh this week floated to colleagues the prospect of meeting less often, which would mark a substantial shift in its operations, according to people familiar with the matter. Warsh this week presided over his second meeting of the 12-person Federal Open Market Committee, which convenes in Washington eight times a year to determine where to set interest rates. The idea of fewer meetings was presented as a subject for discussion rather than a formal proposal, and a brief discussion centered on whether there would be benefits from meeting six times a year, these people said.
2. U.S. Trade Deficit Contracted in June — U.S. imports totaled $388 billion in June, down 1.8% from May, while exports were $314.7 billion, down 0.9% from May. That yielded a trade deficit of $73.3 billion versus $77.6 billion in May. Analysts polled by The Wall Street Journal were expecting a $72.9 billion monthly deficit. Frequently changing tariff policy that began last year has caused volatile movements in U.S. trade flows. In February, the Supreme Court overruled Trump’s use of the International Emergency Economic Powers Act to enact broad global tariffs, but has turned to other authorities as he continues to attempt to limit imports into the U.S.
3. U.S. Economy Unexpectedly Lost 23,000 Jobs in July — The Labor Department’s July jobs report showed that the economy lost 23,000 jobs last month, a big shortfall versus the gain of 83,000 that economists surveyed by The Wall Street Journal had expected. Revisions to May and June payrolls numbers showed that the economy added 103,000 fewer jobs in those two months. More Americans stepped back from the labor market entirely, according to the Labor Department’s separate monthly survey of households. As a result, the unemployment rate eased to 4.1%, from 4.2% in June, even though fewer people were working. In a bright spot likely reflecting the boom in data centers, the construction sector added 22,000 jobs last month. Manufacturing gained 5,000. But leisure and hospitality employers cut 40,000 workers—after cutting even more in June—while retailers shed more than 19,000 employees. Private-sector education and healthcare jobs grew by 25,000, a relatively poor result for what has been a big source of new jobs over the past year.
4. Trump to Impose 15% Tariff, Set Minimum Prices on Solar Panels and Components — President Trump signed a proclamation Thursday that will set a 15% tariff on imports of the solar-energy materials and equipment. Companies that commit to building manufacturing facilities in the U.S. can apply for exemptions from the levies, which take effect on Dec. 4, according to the proclamation.

Cylinders of polysilicon called ingots are sliced to form wafers, which are combined to create solar cells and then arranged together to form modules that are placed on racks to generate electricity.

The week ahead — Economic data from Econoday.com:

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