ICYMI **The IRS has collected $1.3 billion from high-wealth individuals since last fall, thanks to enhanced enforcement measures funded through President Biden’s 2022 climate, healthcare, and tax package.** Treasury Secretary Janet Yellen and IRS Commissioner Danny Werfel highlighted this success during a visit to Austin, Texas, where they noted that much of the unpaid taxes come from the top 1% of earners, leaving average Americans to bear the burden. The IRS has been focusing its efforts on taxpayers with more than $1 million in income and $250,000 in tax debt. Nearly 80% of the 1,600 millionaires targeted have made payments, leading to over $1.1 billion in recovered revenue. Additionally, $172 million has been collected from wealthy individuals who haven’t filed tax returns since 2017. Despite the agency’s recent success, Republicans have called for cuts to IRS funding. However, modernization efforts continue, including the launch of the “Direct File” program, allowing individuals with simple tax filings to submit returns directly to the IRS. This program helped claim over $90 million in refunds during its first rollout, with more states participating in 2025.

ICYMI **Recently, inflation data has regained the spotlight, overtaking labor market trends in shaping the outlook for the U.S. interest rates.** According to one portfolio manager, the critical question for market participants is whether a potential 50-basis-point rate cut signals that a recessionary environment is more likely than the Federal Reserve is comfortable with. The August Consumer Price Index (CPI), due on Wednesday, could decide whether the Federal Reserve opts for a larger-than-usual 50-basis-point rate cut on September 18, a move not seen since the financial crisis of 2008. One primary concern for investors is whether a softer inflation reading, potentially leading to such a cut, would be interpreted as positive or negative news. The latest jobs report showed fewer-than-expected job gains, reinforcing the view that the labor market is cooling. However, Jay Hatfield, CEO of Infrastructure Capital Advisors, believes Friday’s jobs data makes a half-point rate cut unlikely. He stated that if the Fed does implement such a cut, it would indicate that a recession is almost inevitable. Financial market participants will closely monitor Wednesday’s CPI report, which could either confirm or challenge expectations for a 50-basis-point cut. Keith Buchanan, Senior Portfolio Manager at Globalt Investments, noted, “The $64,000