Good morning.

In a surprise to no one, it was announced this morning that inflation jumped as higher energy costs begin to filter their way into the U.S economy.  Consumers are feeling the pinch even beyond the pump as everything from groceries to clothing to even airfares appear to be on the way up.

And it is quite a dilemma.  As there was hope that a new Fed Chairman would be much more accommodating to those who yearn for a rate cut … but in light of recent inflation reports, such powerhouses as Goldman Sachs and Banc of America are quick to point out chances for a 2026 rate cut are slim.

This has soured investor moods … for today at least … as all major U.S. indices have declined.

While tariff news has taken a backseat to stories on the war … there is a lot happening on the tariff front.

According to Business Insider, the start of “tariff refunds” is about to begin … but who is entitled to these amounts … companies or consumers who indirectly ended up paying a portion of the tariffs?  It is no small matter as, for example, one consumer group is suing Nike with the claim that a portion of the $1 billion Nike paid out for tariffs was passed on to them in the way of higher prices … and they want it back.

The administration is attempting to make one move to numb some of the pain with the call to pause collection of a federal tax on gasoline.  This might, however, be met with some resistance as these funds typically go into the “Highway Trust Fund” for maintenance of our nation’s roads … and the organization already borrows (wink) from the government as it is.

But I have my own problem

… as sometimes doing things to cut costs has unforeseen ramifications.

My wife realized her car needed an oil change and, in a rush (and wanting to save money), went to a very well know muffler shop … whose name starts with an “M.”  The shop accidentally pulled the wrong plug … drained the transmission fluid … and … well … the entire transmission was ruined (on an SUV with under 40,000 miles).  The result?  Unknown at the moment, but we have the car dealer, the muffler shop and our insurance company each involved … as there is around a $10,000 estimate to fix this … and have been driving a “loaner” for the last 2 weeks.

But there is actually some really good news.

We saved $14 on the oil change.

Have a great day,

Joseph G. Witthohn, CFA

Have any questions? Please contact info@teamemerald.com

A Look At The News | May 12, 2026 As of 11:23 AM today … Prices have been creeping up … and one claim is that Iran is not the only reason.  One thing certain is it makes the Fed’s job harder (CNBC) https://www.cnbc.com/2026/05/12/cpi-inflation-april-2026-.html   …which is not good … as high borrowing costs hurt consumers … who are already complaining since finances are already a bit stretched (CNN) https://www.cnn.com/2026/05/12/politics/cost-of-living-us-financial-problem-vis   Lowering the gas tax … knocking prices down even a little … might help some … especially as it relates to diesel … as our nation’s truckers have been hit especially hard (NPR) https://www.npr.org/2026/05/11/nx-s1-5818446/trump-gas-tax   There was great hope that the new Fed chairman would fight like mad to cut rates … but the jump in inflation makes that appear to be less likely (Reuters) https://www.reuters.com/business/goldman-sachs-delays-fed-cut-outlook-december-2026-iran-war-drives-us-inflation-2026-05-11/   There are many tasks you can do in advance, and this really does help a great deal with organization and preparedness. You kind of have a butler.  It is you (ArtofManliness) https://www.artofmanliness.com/character/habits/be-your-own-butler/   … and if looking for companionship … AI is there for you … but is this bad or good?  It depends on who you ask … and how deeply the emotional ties (APA.org) https://www.apa.org/monitor/2026/01-02/trends-digital-ai-relationships-emotional-connection   The statements above are supplied for educational purposes only. The statements depict the viewpoints and opinion of the author and are not necessarily the views of Emerald Asset Management or its affiliates. The information described herein is taken from sources which are believed to be reliable, but the accuracy and completeness of such information is not guaranteed by us. Emerald Asset Management PA, LLC | 717-556-8900 | 3175 Oregon Pike, Leola, PA 17540 Want to change how you receive these emails? You can unsubscribe from this list. ———————————————————————————- The statements above are supplied for educational purposes only. The statements depict the viewpoints and opinion of the author and are not necessarily the views of Emerald Asset Management or its affiliates. The information described herein is taken from sources which are believed to be reliable, but the accuracy and completeness of such information is not guaranteed by us.