First rate cut won't come until December, Deutsche predicts

Deutsche Bank AG's economists joined the growing crowd of forecasters who are dialing back expectations for U.S. interest rate cuts after the consumer price index rose at a faster-than-expected pace for a third straight month.

The bank's U.S. economists led by Matthew Luzzetti now predict that the Federal Reserve will ease policy just once this year, in December. That's a sharp reduction from previous forecasts from the company, which as recently as earlier this month was expecting the Fed to usher in four quarter-percentage-point rate cuts this year.

Such recalibration is occurring across Wall Street after inflation figures Wednesday strengthened conviction that the Fed will hold steady until it sees signs that consumer price increases are pulling closer to its 2% annual target.

Whistleblower alleges serious structural flaws on 787, 777 jets

A Boeing quality engineer went public Tuesday with damaging allegations that the jet maker took manufacturing shortcuts to increase production rates that leave potentially serious structural flaws on its 787 and 777 widebody planes.

The Boeing engineer, Sam Salehpour, alleged that almost 1,000 787s and about 400 777s flying are at risk of premature fatigue damage and structural failure.

On Jan. 19, lawyers for Salehpour wrote a letter detailing his allegations to Mike Whitaker, head of the Federal Aviation Administration. The agency said Tuesday it is investigating the claims.

“We thoroughly investigate all safety reports,” FAA spokesperson Ian Gregor said.

Salehpour will speak this week at a Senate hearing convened by Sen. Richard Blumenthal, D-Conn., “to examine Boeing's broken safety culture, focusing on firsthand accounts.”

Postal service eyes first-class stamp increase to 73 cents

The U.S. Postal Service signaled plans Tuesday for a rate increase that includes hiking the cost of a first-class stamp from 68 cents to 73 cents, part of an overall 7.8% increase to take effect this summer.

The request was made to the Postal Regulatory Commission, which must approve the proposed increase that the Postal Service contends is necessary to achieve financial stability. If approved, the 5-cent increase for a “forever” stamp and similar increases for postcards, metered letters and international mail would take effect July 14.

U.S. Postmaster General Louis DeJoy previously warned postal customers to get used to “uncomfortable” rate hikes as the Postal Service seeks to become self-sufficient. He said price increases were overdue after “at least 10 years of a defective pricing model.”

The Postal Service also is seeking price adjustments on special services such as money order fees and certified mail.

Compiled from Bloomberg, The Associated Press and Seattle Times reports.