Greetings,

Walmart, which stands to receive about $2.4 billion in tariff refunds, will use those funds to lower prices for consumers, says CFO John David Rainey.

Will it lower prices meaningfully? Hard to say.

As companies continue to get asked whether they're passing these recoveries back to the customers, will this message land better than others? Probably.

More on that below. Also in this edition:

• Inside Claude's rapid expansion across corporate finance
• US consumer sentiment hits record low amid rising costs
• Economists revise US inflation forecast amid Iran war
• GENIUS Act aims to maintain dollar dominance in digital age

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Walmart plans to use potential tariff refunds, estimated at $2.4 billion, to lower prices for consumers, CFO John David Rainey says. The refunds stem from tariffs struck down by the Supreme Court, with U.S. Customs and Border Protection already processing $35.46 billion in refunds. Rainey notes that elevated fuel prices could drive retail inflation later this year.

Claude, an artificial intelligence platform from Anthropic, is quickly gaining traction in corporate finance as major accounting firms and financial institutions integrate the platform into tax, reporting and other workflows. PwC plans to train and certify 30,000 employees on Claude, and KPMG plans to integrate Claude into Digital Gateway for tax and private equity clients.

Consumer sentiment in the US has fallen to a record low, driven by rising gasoline prices and concerns about the cost of living, according to the University of Michigan's Surveys of Consumers. The survey's Consumer Sentiment Index fell to 44.8 in May from 49.8 in April, with sentiment among Republicans and independents declining significantly, while Democrats' sentiment remained largely unchanged.

Economists have raised U.S. inflation forecasts and delayed expectations for the next Federal Reserve rate cut due to price shocks from the war in Iran. The personal consumption expenditures price index is seen rising 3.9% in Q2, up from 3.6%. Economists are now split on whether the Fed will cut rates in December, with the previous consensus pointing to October.

The US economy faces increasing damage from the war with Iran, with S&P Global noting rising inflation, slower economic growth and a more pessimistic business outlook. The S&P Composite Purchasing Managers Index shows lackluster growth, with manufacturing optimism rising due to precautionary stock building, while service sector optimism has declined.

The US is betting on private digital dollars through the GENIUS Act to preserve the dollar's dominance as global commerce becomes more digital. The law provides a regulatory framework to position payment stablecoins as a potential extension of the dollar and create further demand for US Treasurys. However, stablecoins alone are insufficient to safeguard the dollar's dominance, because "there's nothing that stablecoins can do that get to the foundations of the dollar, which are trust, fiscal processes, rule of law and the independence of monetary authorities," said Josh Lipsky of the Atlantic Council.