Trump Fires Fed Governor Lisa Cook

Risk appetite softened as Fed independence concerns resurfaced, AI enthusiasm met valuation reality, and trade policy tightened. Traders now center on today’s core PCE to guide the rate path.

TL;DR:

• 🏦 Trump fires Fed Governor Cook
• 📊 Core PCE inflation due today
• 🤖 Nvidia beat; China risks linger
• 📦 Tariffs hit low-value imports

Trump Fires Fed Governor Lisa Cook

President Donald Trump dismissed Federal Reserve Governor Lisa Cook, citing alleged mortgage fraud, a move that stoked worries about central bank independence and potential legal challenges. The headline added policy uncertainty to an already fragile tape, with traders reassessing rate-path signaling and broader governance risks. Expect elevated sensitivity in front-end rates and the dollar as markets gauge institutional stability. Source

Core PCE Inflation Data Due

All eyes turn to today’s U.S. core PCE, the Fed’s preferred inflation gauge, for confirmation of disinflation or signs of stickiness that could recalibrate rate-cut odds. Positioning is cautious into the print, with equities and Treasuries poised for a volatility spike on any surprise. Global tone is tentative as regional markets, including the Gulf, eased ahead of the data. Source Source

Nvidia Earnings Raise China, AI Sustainability Questions

Nvidia posted strong results, but investors remained cautious on forward sales tied to China amid export controls and on how durable the AI investment cycle will be. The narrative shifted from headline beats to the quality of guidance, data center visibility, and geographic diversification to offset potential China softness. Valuation sensitivity remains high, especially for high-duration tech. Source

De Minimis Exemption Ends; New Tariffs Begin

With the end of the “de minimis” exemption, low-value packages entering the U.S. now face tariffs, tightening trade conditions for cross-border e-commerce. The policy shift raises cost pressure for import-reliant retailers and logistics networks, with possible pass-through to consumers if margins compress. Watch apparel, electronics accessories, and marketplace sellers for near-term impact. Source