Core PCE Stays at 3.3%, Bitcoin Hits Mainstream, and AI for Rare Diseases Gains Ground

Key Takeaways

1. July core PCE inflation ran at 3.3% YoY, extending 65 straight months above the Fed's 2% target, while debt-crisis warnings escalate.
2. Bitcoin's mainstream adoption gets a WSJ full-page endorsement, with 1 in 4 Americans now holding the asset.
3. Anthropic and AWS back a $50K rare-disease hackathon, and AC2 opens its private beta for AI model factories.
4. Muddy Waters flags 1xBet/$SRAD for abusing DMCA takedowns against short-sellers and researchers.
5. U.S. data show a mixed economy: GDP and durable goods beat, but housing and consumer confidence are softening.

1. Macro, Inflation, and Debt

1. July inflation stays sticky: Core PCE rose 3.3% YoY (0.2% MoM) and headline PCE hit 3.7% YoY. Charlie Bilello notes core PCE has exceeded the Fed's 2% target for 65 consecutive months, and criticizes Kevin Warsh's lack of action. — via 1 2
2. Growth and spending hold up: Q2 2026 GDP was revised to +1.5% annualized with personal consumption at +3.4%. July personal income rose 0.4% and spending 0.2%, while durable-goods orders jumped 1.1%, beating expectations. — via 1 2 3
3. Housing and confidence soften: New-home sales and consumer confidence missed estimates; mortgage applications fell 1.0% in the week to Aug 21, lifting the 30-year rate to 6.78%. Existing single-family inventory hit a 10-year high, and the FHFA house price index was flat in June. Liz Ann Sonders adds the Citigroup economic surprise index remains positive but is rolling over. — via 1 2 3 4
4. Debt-crisis warnings intensify: Charlie Bilello's latest chart argues the U.S. is 'moving closer to a debt crisis.' Ben Carlson disagrees, calling it a political rather than government debt crisis, while Clifford Asness criticizes the NYT editorial for full debt forgiveness, warning it would raise borrowing costs. — via 1 2 3

2. Crypto and Digital Assets

1. Bitcoin goes mainstream: A WSJ full-page ad declares the 'marginal era is officially over,' citing 1 in 4 Americans holding Bitcoin, $1.25 trillion in wealth protected, the most successful ETF launch ever, and adoption on corporate and government balance sheets. — via 1
2. Blockchain's next frontier: AI agents: Raoul Pal recalls being mocked three years ago for predicting blockchain would serve the agent economy; now institutions are pivoting. He argues the real scale is in agents, not human users, because agents lack bank accounts and work-hour limits, making programmable rails essential. — via 1

3. AI and Technology

1. Rare-disease hackathon backed by Anthropic and AWS: Reid Hoffman promotes the 'Rare Disease, Real Kids' hackathon, releasing one child's genomic and clinical data with a $50,000 prize to find a cause and approved drug. The initiative underscores how AI could empower patients to self-advocate when traditional research stalls. — via 1
2. AC2 opens private beta for AI model factories: Elad Gil highlights AC2's private beta launch, which has supported AI teams at Microsoft and NVIDIA over the past six months — a sign of accelerating AI infrastructure tooling. — via 1

4. Market Structure and Investor Alerts

1. Muddy Waters alleges DMCA abuse by 1xBet/$SRAD: The research firm flags iGaming Business coverage that 1xBet used fake copyright takedowns against short-sellers and researchers, asking whether others have faced similar removals. — via 1
2. Wealth-management shakeup: Meb Faber is surprised SCHW hasn't fallen more after Altruist's acquisition, predicting every advisor will open a primary or secondary account at Altruist. He also views Vanguard's entry into custody as a tough day for Fidelity and $100 ETF commissions. — via 1 2
3. Cycle-history lessons: Ben Carlson revisits how the most-loved stocks collapsed harder than the market and broader economy at the end of the Go-Go era, urging investors to consider how the current cycle ends. His latest show also tackles whether free markets are dead and rising private-market fraud risk. — via 1 2