Federal Reserve Bank of Dallas President Lorie Logan said money markets could face temporary pressures around the end of next month, though the US central bank still has room to continue reducing its balance sheet. “We could see some temporary pressure around the tax date and quarter-end in September,” Logan said Monday.

Since 2022, Fed officials have been winding down the central bank’s balance sheet with the goal of bringing reserves to a minimum ample level that would avoid market disruptions, reversing trillions of dollars of asset purchases designed to stimulate the economy after the pandemic shock.

This year, the central bank slowed down the pace of balance-sheet reduction, though officials have debated how close they are to the end point. Bank reserve balances are currently around $3.3 trillion, according to the latest Fed data. Fed Governor Christopher Waller recently estimated the minimum ample level to be around $2.7 trillion. —David E. Rovella and Natasha Solo-Lyons

What You Need to Know Today

US President Donald Trump signed an executive order Monday aimed at creating special units of the National Guard in all 50 states and the District of Columbia to potentially intercede in civilian law enforcement matters, the New York Times reported. The effort by Trump further escalates his unprecedented militarization of Washington DC and earlier deployment of US Marines and California National Guard soldiers on the streets of Los Angeles.

Trump has also threatened to send soldiers to other Democratic-run cities. As with Washington, he has cited as justification dystopian visions of crime in American cities that run counter to federal and local data. (In the case of Los Angeles, the White House cited largely peaceful protests against his immigration crackdown.) Trump’s latest order comes as he struggles with a 40% approval rating, a wavering economy and a continuing outcry from his party’s base over files tied to convicted sex trafficker Jeffrey Epstein, with whom Trump said he was once friends. 

Illinois Governor JB Pritzker Photographer: Taylor Glascock/Bloomberg

An Economist/YouGov poll conducted between Aug. 15 and Aug. 18 found that 53% of Americans disapprove of Trump’s handling of the economy compared to 39% who approve, a gap larger than at any time during Trump’s first term. Meanwhile opponents of Trump’s historic break with American norms when it comes to his widening use of the military among civilians—which is the subject of pending litigation—erupted on Monday.

“This is about Donald Trump searching for any justification to deploy the military in a blue city, in a blue state, to try and intimidate his political rivals,” Illinois Governor JB Pritzker, a Democrat, said. Trump is “searching for ways to lay the groundwork to circumvent our democracy, militarize our cities and end elections.”

Elon Musk accused Apple and OpenAI in a lawsuit of unfairly favoring the artificial intelligence app across iPhones and thwarting competition for other chatbot makers. Musk, who owns the social media platform X and AI firm xAI, filed the lawsuit Monday in federal court in Fort Worth, Texas, arguing that Apple’s decision to integrate OpenAI into the iPhone’s operating system harms competition and deprives consumers of choice.

The billionaire founder and former White House adviser to Trump claims Apple makes it impossible for anyone other than OpenAI to reach the top of the App Store charts, a sought-after global spotlight for app developers. Some of the allegations in Musk’s suit mirror those brought by the Trump administration against Apple.

Israel struck one of the main hospitals in the Gaza Strip on Monday—and then hit the facility again as journalists and rescue workers rushed to the scene, the Associated Press reported. The bombing killed at least 20 people and wounded scores more, local health workers said. It was among the deadliest of several Israeli strikes that have hit both hospitals and journalists over the course of the 22-month war, the AP said.

The attack comes as Prime Minister Benjamin Netanyahu  plans to widen his offensive to heavily populated areas. Among those killed was 33-year-old Mariam Dagga, a visual journalist who had worked for the AP. Dagga regularly reported for multiple outlets from the hospital, including a recent story on doctors struggling to save children from starvation. The latest deaths bring the number of journalists killed in Gaza since the start of the war to almost 200, the BBC reported.

A Palestinian youth stands on a street strewn with rubble following an explosion in the Saftawi neighborhood in the northern Gaza Strip on Aug. 25. Photographer: Bashar Taleb/AFP/Getty Images

Gaza’s Hamas-run health ministry says more than 62,000 Palestinians have been killed in the war. Staffed by medical professionals, it does not distinguish between fighters and civilians but says around half have been women and children. The United Nations and independent experts consider it the most reliable source on war casualties, the AP said. Israel says 1,200 people, mostly civilians, were killed in the Oct. 7, 2023 attack by Hamas and other groups that sparked the conflict.

Once rare, seven-year car loans are fast becoming the norm in the US. They’re often the only way buyers can afford new rides, with average sale prices surging 28% in five years to approach $50,000. Compared to a five-year loan, they can make the difference between a $1,000 monthly payment and a $780 one.

In the second quarter of 2025, seven-year loans represented 21.6% of all new-vehicle financing. Six-year loans, at one time considered the upper end of the range, are now the most common, accounting for 36.1% of loans in the second quarter. Some buyers are even going for eight-year loans.

The Pinault family is said to have reached out to potential buyers of Puma after the German sports brand lost about half of its market value in the past year. The billionaire family, which owns a 29% stake in Frankfurt-listed Puma through Artémis, is working with advisers, possibly with a view to triggering a sale of the company.

It is the richest of times and it is the most unequal of times, Allison Schrager writes in Bloomberg Opinion. The difference in wealth and income between the top 1% and the rest of America tends to get more attention, but one of the more striking wealth gaps is generational: Older Americans are far richer than young Americans. 

What You’ll Need to Know Tomorrow

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