U.S. inflation reached its highest point since 1981 in June at 9.1%, driven primarily by high fuel, food and housing prices. The spike in inflation has increased pressure on the Federal Reserve to act and may lead the central bank to raise interest rates by one percentage point. Economists warned that if the Fed chooses to implement a sustained period of high interest rates the chances of a recession in the next year significantly increase. While fuel prices were a major driver in the inflation rate increase, observers noted that consumer gas prices have begun to drop in recent weeks even though the trend could be quickly reversed.

The U.S. Secretary of Commerce Gina Raimondo urged Congress to pass stalled legislation related to semiconductors, stressing the urgency of passing the passing the bill to shore up national security. Raimondo argued that a separate bill focused entirely on the semiconductor aspect of the CHIPS Act was a suitable path forward. Democrats noted that a failure to pass semiconductor legislation soon can adversely affect the economy and U.S. security as chipmakers have been courted by other nations to open chip plants, highlighting the U.S.’s relatively slow pace in building capacity for domestic chip production. Despite the Biden administration’s rhetoric, some scholars have questioned how much of a national security threat reliance on East Asia for semiconductor production really is for the U.S.

Delta Airlines announced it will limit its operational capacity to the levels it operated in June, citing strong demand but a challenging operational environment. Airlines have been plagued by a spate of logistical challenges during the summer travel season ranging from cancelled flights to staffing shortages. Despite the announcement, Delta said it remains optimistic that the travel rebound will persist past the summer due to a rise in corporate travel and lowering of travel restrictions related to COVID-19. Industry experts have argued that airlines can work with unions to help ease staffing shortages, particularly as flight attendants have seen their incomes affected by the wave of flight cancellations.

Cryptocurrency lending company Celsius Network filed for bankruptcy this week after halting withdrawals and transfers earlier in the month. The news came shortly after Vermont's Department of Financial Regulation said it believed the company did not have the cash on hand to pay customers and creditors. Celsius’ troubles are the latest in a string of cryptocurrency casualties as the industry has seen high-profile companies such as Voyager and Three Arrows Capital fall apart due to the rapid collapse in prices for digital currencies. Celsius said its filing of Chapter 11 will allow the company to handle restructuring for its stakeholders and stabilize its business, and while the news sent another shockwave through the cryptocurrency industry, digital currency markets handled the news well as Bitcoin jumped 1.7% on Wednesday.

The President of Sri Lanka fled the nation for the Maldives after announcing his resignation this week amid increasingly chaotic protests. Protestors took over the Presidential estate and this week stormed the Prime Minister’s office, bringing about a state of emergency as protestors vowed not to stop until a new president and prime minister are installed. The people of Sri Lanka have cited mistrust in the government and the scarcity of food and medicine, worsened by the country heading towards bankruptcy, as the reasons for their protests.Analysts said the political turmoil will likely worsen the island nation’s economic struggles. Experts warned that the chaos in Sri Lanka is not unique to the nation and offers lessons of what emerging markets can expect as a result of governmental failures.

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