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Good morning. A Federal Reserve official ponders one more rate hike, Wall Street tries to beat the market with artificial intelligence and H [View in browser]( [Bloomberg]( Good morning. A Federal Reserve official ponders one more rate hike, Wall Street tries to beat the market with artificial intelligence and House Speaker Kevin McCarthy faces a leadership challenge. Here's what's moving markets. — [Kristine Aquino]( One more [Cleveland Fed President Loretta Mester said policymakers will likely need to raise rates once more this year](and then hold them at higher levels for some time to get inflation back to its 2% target. The final decision will depend on how the economy evolves, amid risks including a slowdown in China and the possibility of an extended strike by auto workers, she said. Mester, who doesn’t vote on policy this year, added that the inflation rate remains too high and the rising cost of gas resonate strongly with consumers, who could expect price pressures to start accelerating again. AI vs markets [Hedge funds are increasingly piling into efforts to create artificial intelligence that can teach itself to beat the market](, but so far it hasn’t happened. The technology has for years struggled to crack the actual business of investing, with machines getting bamboozled by noisy markets and getting caught off guard by fickle trends. A Eurekahedge index of 12 funds using AI has trailed its broader hedge fund index by about 14 percentage points over the past five years. Yet AI advocates say they’re not striving for market-thumping returns, just a slight edge. “In finance you can be very successful by just being a little bit better than 50%,” said Michael Kharitonov, a veteran of the CERN nuclear research lab in Geneva. McCarthy challenge [Republican Matt Gaetz officially moved to topple House Speaker Kevin McCarthy on Monday evening](, following McCarthy’s embrace of a bipartisan deal to avert a US government shutdown. At least one other Republican dissident explicitly said he would join Gaetz. As few as five ultra-conservatives could overthrow McCarthy if all Democrats support them. For the speaker’s job, Gaetz indicated he would be willing to support second-ranking House Republican, Majority Leader Steve Scalise, who is currently being treated for a rare blood cancer. The move, officially called a motion to vacate the chair, is a parliamentary process that has not resulted in a speaker removal vote since 1910. Subdued markets S&P 500 and Nasdaq 100 futures were little changed as of 5:30 a.m. in New York. Treasury yields edged higher, with 10- and 30-year rates climbing to levels last seen more than a decade ago. The Bloomberg Dollar Spot Index rose to an 10-month high, pressuring most Group-of-10 currencies. WTI crude traded below $89, and gold and Bitcoin fell. Coming up… Atlanta Fed President Raphael Bostic will take part in a moderated discussion at 8 a.m. At 10 a.m., we’ll get data on job openings. How will soaring Treasury yields impact the S&P 500 through the rest of the year? Is lower inflation a good or a bad thing for corporate profits? Share your views in the latest [MLIV Pulse survey](. What we’ve been reading This is what’s caught our eye over the past 24 hours: - [BYD gets closer to overtaking Tesla]( as the world’s biggest seller of EVs - [UK food prices fall]( for the first time in two years - A drop in watch prices sees [Rolex underperforming rivals Cartier, Omega]( - [Taiwan tech firms are helping Huawei]( build chip plants in China - Singapore’s money laundering probe leads to [$2 billion of assets seized]( - [Taylor Swift and Travis Kelce](give NFL ratings a boost - [US hospitals’ dependence on foreign nurses](reveals system of exploitation And finally, here's what Joe’s interested in this morning It's Jobs Week. And as a little appetizer before this Friday's release, today we get the JOLTS report. Total Job Openings and The Quit Rate have become top-shelf data in this era of trying to gauge so-called labor imbalances. So those looking for a soft landing will be looking for these lines to continue trending down.  Totally separately, another chart that's interesting to me is wholesale gasoline futures. There's been a lot of talk about the rebound in crude prices over the last few months. There's been less talk about the fall in whole gasoline price futures recently, as refiner margins (so-called crack spreads) have collapsed. Expect retail gasoline prices to follow wholesale down. And if gasoline prices are an important determinant of consumer sentiment (as they seem to be) then this is probably good news on that front. And finally here's an interesting chart that I saw in this [article about the Treasury selloff and mounting fears over the size of the deficit](. There's been a break down in the relationship between the 10-year Treasury yield (yellow) and ratio of copper to gold (white lines). For years they kind of moved together, with the intuition being that rates were moving for cyclical reasons. When rates would rise, it would correspond with bidding for an industrial metal over a precious metal and vice versa. The fear is that with rates rising, despite the lack of copper bidding, that there's some other factor driving rates (like booming supply of Treasuries) that's causing the move. Of course there could be other factors, including copper's fading role as a cyclical indicator. Nonetheless it's interesting what longstanding chart patterns start to change. Follow Bloomberg's Joe Weisenthal on Twitter [@TheStalwart]( Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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