Fed Chairman Jerome Powell sent a strong signal the central bank could cut interest rates later this month.

Federal Reserve Chairman Jerome Powell testifies before the House Committee on Financial Services on Wednesday. PHOTO: STEFANI REYNOLDS/CNP/ZUMA PRESS

In testimony before a House committee, Mr. Powell highlighted how the economic outlook hasn’t improved in recent weeks. He also warned of risks that weaker inflation readings could prove more persistent than previously anticipated. Mr. Powell will testify again today, this time in front of a Senate committee. 

Minutes of the Federal Reserve’s June meeting were also released yesterday.

Stocks in the U.S. leapt after Mr. Powell’s testimony. The Nasdaq Composite closed at a record 8202.52. Energy and technology stocks led the S&P 500 higher as it briefly breached the 3000 level for the first time before ending the day at 2993.07.

Iranian ships attempted to impede a U.K.-flagged oil tanker in the Persian Gulf, the British Defense Ministry said. The British Royal Navy’s HMS Montrose, pictured, trained its guns at the three Iranian ships and issued verbal warnings before they backed away from the BP tanker in the Strait of Hormuz. Sepahnews.com, an Iranian news website tied to the Islamic Revolutionary Guard Corps., denied the unit’s forces had tried to detain the ship.

• President Trump made fresh threats to ramp up U.S. sanctions against Iran “substantially,” as Tehran ignores a 2015 agreement to curb its nuclear program and steps up its enrichment of uranium.

The U.S. Justice Department is investigating whether Deutsche Bank violated foreign corruption or anti-money-laundering laws in its work for 1Malaysia Development Bhd., which included helping it raise $1.2 billion in 2014 as concerns about the fund’s management and financials had begun to circulate. 

“Deutsche Bank has cooperated fully with all regulatory and law-enforcement agencies that have made inquiries relating to 1MDB,” a spokesman for the bank said. He cited Justice Department documents saying 1MDB made “material misrepresentations and omissions to Deutsche Bank officials” in connection with 1MDB’s transactions with the bank. “This is consistent with the bank’s own findings in this matter,” he added.

California’s PG&E knew for years its lines could spark wildfires, and didn’t fix them.

State fire officials concluded that a failure of PG&E equipment caused the fire that destroyed Paradise, above. PHOTO: JOSH EDELSON/AGENCE FRANCE-PRESSE/GETTY IMAGES

The utility knew for years that hundreds of miles of high-voltage power lines could fail and spark fires, yet it repeatedly failed to perform the necessary upgrades. Documents obtained by The Wall Street Journal under the Freedom of Information Act and in connection with a regulatory dispute over PG&E’s spending on its electrical grid show that the company has long been aware that parts of its 18,500-mile transmission system have reached the end of their useful lives. 

The failure last year of a century-old transmission line that sparked a wildfire, killed 85 people and destroyed the town of Paradise wasn’t an aberration, the documents show. Federal and state regulators have paid little attention to the condition of PG&E’s transmission system, and have largely left it up to the company to decide what to upgrade and when. California officials are proposing adding more inspections and oversight.

PG&E said it already has repaired or made spot fixes to the most severe problems it uncovered throughout its system. Risks remain, and the company said it is working to prioritize and address them.

Treasury Secretary Steven Mnuchin has in recent days urged U.S. suppliers to Huawei Technologies to seek licenses to resume sales to the blacklisted Chinese technology company. That reflects a recent reversal of the Trump administration’s stance. Huawei’s pariah status in the U.S. has been a stumbling block in trade talks.

Last month, President Trump agreed to grant exemptions to the Huawei blacklist in cases that wouldn’t affect national security. 

• Sen. Marco Rubio (R., Fla.) plans to introduce a bill aimed at making the U.S. more competitive with China in processing crucial rare-earth minerals. 

• U.S. Trade Representative Robert Lighthizer said the U.S. is launching an investigation into France’s planned tax on digital services under the same broad law the Trump administration relied on for its trade conflict with China.

A skull bone unearthed in Greece decades ago may be the earliest known evidence of modern humans outside Africa.

A composite image of computer generated renderings next to a fragment of the approximately 210,000-year-old skull believed to be the oldest known modern human outside Africa. PHOTO: KATERINA HARVATI, EBERHARD KARLS UNIVERSITY OF TÜBINGEN

The cranium dates to more than 210,000 years ago, older than any other fossil of Homo sapiens known in Eurasia, according to researchers’ analysis in the journal Nature. The new finding suggests that our direct ancestors tried repeatedly to move into Europe and Asia, where other early human species had already settled, before establishing themselves there. Modern humans didn’t replace Neanderthals across Europe until about 45,000 years ago. 

• In Siberia, the warming climate has brought dozens of ancient mammoth parts to the surface of the permafrost, turning the region into a magnet for scientists, tour operators and ivory traders.

What We’re Following

British Embassy officials, many of whom hold Ambassador Kim Darroch in high regard, were distressed by the events that led to his resignation. PHOTO: NIALL CARSON/PA WIRE/ZUMA PRESS

Homeward Bound: Britain’s ambassador to the U.S., Kim Darroch, said he would resign over the diplomatic firestorm caused by the leak of cables in which he criticized President Trump.

Cyberattack Rules: Lawmakers say the Trump administration hasn’t allowed members of Congress to read a months-old classified directive from the president outlining new rules for military use of cyber weapons.

Making a Comeback: Cybersecurity-software company McAfee is planning to return to the public markets.

Amazonian Task: Amazon.com plans to spend $700 million to retrain a third of its U.S. workforce by 2025.

Trending Stories at WSJ.com

When pregnancies and bigger jobs go hand in hand: Women are winning leadership roles while expecting. (Read)

Democratic presidential candidate Joe Biden substantially lowered his tax bill thanks to a loophole the Obama administration had tried and failed to close. (Read)

Serena Williams and Andy Murray’s excellent Wimbledon adventure. (Read)

What Else We’re Reading

Volkswagen ended production of the iconic Beetle at a plant in Mexico. Taking its place on the lines: a compact SUV. (Bloomberg)

Construction of a giant $1.4 billion telescope on Hawaii’s tallest mountain will start again next week after lengthy court battles and passionate protests from those who say the work will desecrate land sacred to some Native Hawaiians. (Associated Press)

Today’s Question and Answer

In response to our question about whether elected officials should be permitted to block those on social media who disagree with them:

Linda Stern, Illinois
Public servants should want to see what’s being sent to them. They need to know what their constituents think. They’re supposed to be representing all of us, not just their base. And if they’re receiving threats, they need to know that, too, so they can be protected.

Jon Oram, Indiana
Of course anyone should be able to block any communication, with the exception of subpoenas. How many people do you know with Caller ID who block unwanted calls by simply not answering? Politicians should have equal rights to block communications as a matter of law. That said, it might not be a smart move for officials to shield themselves from the thoughts and opinions of their opposition, no matter how crudely or obscenely expressed. They might be missing something important, though it is likely to be the needle in the proverbial haystack.

Daniel Glackin, Pennsylvania
Let’s break down this whole idea of “blocking” someone on Twitter. I’m perplexed at how this violates users’ First Amendment rights. Can’t they still talk about Trump and voice their opinions on an open platform without following the man? They have a right to say their opinion and Trump also has the right to downright ignore them. Taking away that right from Trump seems to be a bigger violation of his First Amendment rights. On another note, if Trump is seen as a public figure and public figures now can’t block people, doesn’t that open up more problems? Let’s say you’re just an influencer for a brand getting harassed by trolls online. Since you’re a public figure (you have the blue check!), is this court saying you can’t block these trolls anymore? Just seems wrong to me.

Anne Etra, New York
No. President Trump dishes it out, so he has to be able to take it.

Question for tomorrow’s 10-Point:

Going back to our article above, do you think the British ambassador should have resigned after secret cables critical of President Trump were leaked? Why or why not?

Email us your comments, which we may edit before publication, to 10point@wsj.com, and make sure to include your first and last name and location.