This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Every Monday, Bloomberg Intelligence senior analyst Nathan Dean gives his insights into what’s been happening and what’s coming up in the nooks and crannies of government and markets. Sign up here and follow us at @bpolitics. Email our editors here.

Changing World

Every Monday I host a call for Bloomberg Terminal clients about Washington and how policy actions can impact an investor’s portfolio. And so, this morning, as I preparing for the call after a week away on the beach, I couldn’t help but be amazed at how the news cycle didn’t get the memo we should be in the “recess” part of August recess.

Where do we start? This morning we saw Nvidia and AMD agree to pay 15% of its China AI chip sales to the US government. As Bloomberg News’ Katia Dmitrieva and Philip Heijmans write, the deal could usher in a changing world with trade policy shifting from country-to-country negotiations to country-to-company negotiations. And as it was discussed on Bloomberg’s “The Opening Trade”, both companies and Beijing may not be happy with such a move.

Back here in the States, there’s been a lot of chatter about possible plans from the Trump administration to end Fannie Mae and Freddie Mac’s conservatorships and to take them public, potentially as soon as November. Call us skeptical. My colleagues Ben Elliott and Erica Adelberg write on the Bloomberg Terminal that the to-do list — hiring bankers, reworking capital rules, amending stock purchase agreements — is far too complex to be done in such a short timeframe.

I’d also be remiss if I didn’t mention the potential geopolitical significance of President Donald Trump’s planned meeting with Russian President Vladmir Putin in Alaska on Friday. It’s hard to predict what’s going to happen so here’s a few articles that I’m reading to prepare:

• “ Trump Downplays Expectations for Summit Deal With Putin” by Skylar Woodhouse, Josh Wingrove and Natalia Drozdiak
• “ NATO Chief Sees Ukraine’s Land In Play as Trump Meets Putin” by Hadriana Lowenkron
• “ Putin May Feel at Home With Trump in Alaska” by Anthony Halpin

Tidbits

• If your kids are like mine, they are already preparing for the school year – my 9-year old son informed me that a new Minnesota Vikings Justin Jefferson jersey was “essential” for 4th grade – but here’s Kat Odell with “ Back-to-School Gear Guide From a Design-Loving Parent”.
• I’m of the mindset that no car payment is better than a new car payment – hence why my 2017 Volvo will likely stick around for a few more years – but I’ve been enticed more about the electric vehicles on the market. Here’s Hannah Elliott with why Cadillac’s new EV SUV Optiq could be worth a look.
• If you are a terminal client and would like to have access to the call we hold at 10:00 a.m., please feel free to contact me either via e-mail or Instant Bloomberg chat. — Nathan R. Dean

Don’t Miss

Trump extended a tariff truce with China for another 90 days, stabilizing trade ties between the world’s two largest economies and easing worries of a renewed tariff war.

Trump announced he would take control of the Washington, DC, police department and deploy 800 National Guard troops as he escalates his push to exert power over the nation’s capital.

Trump’s tax and spending law will deal a financial blow to the poorest Americans while boosting the income of wealthier households, according to a new analysis from the Congressional Budget Office.

The president’s push to redesign the global economic order in favor of the US is shaking one of the foundations of its post-World War II supremacy: the dollar’s undisputed role as the world’s reserve currency.

Small US companies, the source of more than half of the country’s job creation in recent years, are struggling to comply with Trump’s new tariffs and cope with growing financial strains of higher import costs.

Trump said imports of gold won’t face US tariffs, weighing in after a Customs and Border Protection ruling caused chaos and confusion in global bullion markets.

Federal Reserve Vice Chairs Michelle Bowman and Philip Jefferson and Dallas Fed President Lorie Logan are under consideration to serve as chair of the central bank when the position opens next year.

A US appeals court ordered the Trump administration to resume publicly sharing data on how it is spending federal dollars, blasting the government for suddenly refusing to follow a law that requires transparency.

A federal judge in New York denied an administration request to release sealed grand jury materials in the criminal case against Ghislaine Maxwell, the former girlfriend and associate of Jeffrey Epstein.

Watch & Listen

Today on Bloomberg Television’s Balance of Power early edition at 1 p.m., host Joe Mathieu interviewed Brett Bruen, president of the Global Situation Room and former White House official, about the outlook for Trump’s meeting with Putin.

On the program at 5 p.m., he talks with Democratic Representative Raja Krishnamoorthi of Illinois about Trump’s dealings with China on trade.

On the Big Take podcast, Bloomberg private equity reporter Allison McNeely joins host Sarah Holder to explain what letting private equity into a $12 trillion piece of America’s retirement market could mean for the average American’s retirement savings. Listen on iHeart, Apple Podcasts and Spotify.

Chart of the Day

US consumers absorbed 22% of tariff costs through June, but that share is anticipated to rise to two-thirds of the overall costs in the coming months, according to calculations done by Goldman Sachs. Foreign exporters absorbed 14% of the costs by reducing their prices, while US businesses have absorbed near two thirds of the tariff costs, the banks economists found. They expect that the share absorbed by businesses will fall to less than 10% going forward. A greater share, 67% of the direct costs of tariffs, would be paid by consumers in higher prices. But, longer term, they also expect more of a burden to fall on exporters, about one-quarter of the tariffs are expected to be paid by exporters in the form of lower costs for US importers. — Alex Tanzi 

What’s Next

The consumer price index for July will be released tomorrow.

The producer price index for July will be reported Thursday.

Retail sales for July will be reported on Friday.

Data on import and export prices in July will be reported Friday.

The University of Michigan’s preliminary read of consumer sentiment will be released Friday.

Housing starts and building permits for July will be reported on Aug. 19.

Minutes from the Fed’s last meeting will be released Aug. 20.

Existing home sales in July are set to be reported Aug. 21.

The House and Senate are on break until Sept. 2.

Seen Elsewhere

• Mothers with young children are leaving the US workforce in large numbers, wiping out many of the gains made by working mothers during the pandemic, the Washington Post reports.
• A deluge of misinformation and conspiracy theories along with angry homeowners forced Oregon to pull back on a planned map of wildfire risk for every property in the state, ProPublica reports.
• Faced with budget shortfalls, New Hampshire, has changed the terms of an settlement to compensate victims were sexually and physically abused at state-run youth detention centers, the New York Times reports.

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