In early May, SEC Chairman Paul Atkins officially announced a proposed rule ending the quarterly reporting requirement for public companies. Under this proposal, companies would be required to report their finances only twice a year—but could choose to continue quarterly reporting.

As federal law requires, the proposal was available for public comment, and it received thousands. The vast majority of comments—many from angry investors—appear deeply opposed to the new rule. No matter; a report this month in the Wall Street Journal indicates the Trump administration will ensure it becomes law no matter what.

But what are corporate finance departments thinking? Is this new rule a time saver or a false option? Will it make it easier for companies to concentrate on long-term results, or will it hide the work that goes into a turnaround? I spoke with Grant Clayton, U.S. managing partner at leadership advisory and executive search firm Egon Zehnder, about what CFOs are saying. An excerpt from our conversation is later in this newsletter.

Until next time.  

The war with Iran was back for a while, bringing a wider conflict in the Middle East and higher gas prices with it. Last week, President Donald Trump told media outlets he was close to launching a “massive attack” against Iran—claiming it would be the biggest yet since the war began—and oil prices neared $100 a barrel as Iran extended its blockade in the Strait of Hormuz. Trump has since backed away from the attacks he spoke about—reportedly after top officials advised against it and to continue negotiations with Middle Eastern countries about reopening critical waterways.

Oil prices have settled down, but the national average is still $4.09 per gallon, according to AAA. Markets opened on a high note on Monday as oil prices dropped, but flattened later in the day and continued slightly downward this morning amid ongoing concerns about AI infrastructure costs. The war’s wider impact on the economy will get a critical look this week as the Federal Reserve’s Open Market Committee meeting begins today. Forbes senior contributor Simon Moore writes that Fed governors have indicated in speeches that rates may need to go up if inflation doesn’t slow down, and as of Tuesday morning, the odds of a rate hike this week sat at nearly 33.7%, according to CME FedWatch.

As the war in Iran drags on, markets continue to be on a roller coaster, inflation stays sticky and AI keeps disrupting what had been the normal course of business, CFO confidence is also dropping, according to Deloitte’s most recent quarterly CFO Signals survey. On a scale of 1 to 10, CFO confidence was at 5.9 in Q2, the second straight quarter it has dropped. But they are feeling good about their own companies, with nine in 10 expecting the next quarter to be better than the current one, and half saying the economy as a whole will improve in six months.

One thing they are not confident about: Their own companies’ AI governance. A breakdown of responses about AI shows that just over half—53.5%—are only somewhat confident in their company’s AI governance. And CFOs cannot ignore their misgivings about how much control there is over AI: Three out of five say one of their biggest challenges they face with AI is balancing business pressure to quickly deploy it with managing risks. Just over half say the lack of governance authority is one of their top three issues. The other big issue with corporate AI use hanging over CFOs’ heads? The cost. About 46% say that the uncertainty around AI costs and the lack of pricing transparency are among their top two concerns about internal use of the systems.

Another week, another set of new tariffs. Last week, President Donald Trump announced new tariffs of between 10% and 12.5% on 60 countries he said have a “failure to impose and effectively enforce” a ban on forced-labor practices in trade with the U.S. These tariffs, allowed under a 1974 law, came after a U.S. Trade Representative investigation of these economies. A report issued last month found “acts, policies, and practices” in these countries that it says failed to enforce a prohibition on imports of goods produced using forced labor.

Countries worldwide have responded that the tariffs—and the accusation that their economies rely on forced labor—are unjustified. Many countries say their trade practices comply with international rules and have threatened to retaliate against the U.S. with tariffs of their own.

A group of small businesses has already sued the Trump Administration over these tariffs, but experts told Forbes the courts are unlikely to overturn them. Courts have upheld previous tariffs under this law, and because they are established after an investigative report, there is actual detailed rationale behind the tariff choices.

However, the way Trump feels about tariffs—as a punitive measure—is still on full display. In a Friday Truth Social post, he threatened to retaliate against the EU for fining Google $1 billion for violating a European digital antitrust law. Trump wrote his administration anticipates “a substantial TARIFF to be placed on [the EU] at the earliest possible moment.”

A new report from the Global Fashion Agenda highlights a trend that has been taking place throughout different industries: Sustainability is largely a balance-sheet issue. The report, written in collaboration with Boston Consulting Group, highlights the role CFOs play in ensuring corporate sustainability—both from environmental and financial standpoints.

Transforming your finance department is about more than switching around names on the org chart. It requires an actual overhaul of what people do, the technical tools they use to do those tasks, and the way leadership is distributed across the department—many things that may not have been set in stone in the first place. Here’s how to get started changing your operating model.