Economic reports this past week were generally better than expected on both the inflation and business activity front. We provide color herein on the inflation data which spurred a decline in yields. Various survey results portrayed modestly better business sentiment, with the Empire Manufacturing, NY Fed Business Leaders, and Philadelphia Fed Business surveys all posting improvements. The notable exceptions to the improved data were the decidedly worse-than-expected results from the NAHB Housing Market Index and NAR Pending Home Sales data; the former report registered its lowest level of the year, while the latter posted a 5-month low. Elevated rates and challenging affordability continue to be headwinds to improvement in the housing sector. Improved sentiment and inflation readings are likely, at least in part, due to the decline in energy prices in June. But the past week has proven that the Mideast situation remains both unresolved and fluid, thereby leaving its impact on prices potentially still intact...

Tune in for a thought-provoking discussion with Frank Farone, Managing Director at Darling Consulting Group, on how community financial institutions can evaluate the true cost of funds, challenge common misconceptions about wholesale funding, and develop a more effective approach to liquidity, profitability, and balance sheet management...

After years of anticipating a return to lower interest rates, many financial institutions have come to recognize that rates may remain elevated for longer than originally expected. While a higher-for-longer environment presents challenges—including deposit competition, funding pressures, slower loan demand, and margin compression—it also creates opportunities for well-positioned institutions to enhance earnings, strengthen liquidity, and support strategic growth...