Federal Shares Climb Following Trump-Powell Fed Journey: Today's Stock Market performance
In a recent statement, President Donald Trump expressed that Federal Reserve Chair Jerome Powell would not be fired due to cost overruns for renovation projects. However, legal experts suggest that any attempt by Trump to fire Powell without a valid cause would likely provoke a significant legal battle with uncertain outcomes and potentially serious consequences for the independence of the Federal Reserve and financial markets.
The Federal Reserve was designed to operate independently from presidential influence to maintain confidence in monetary policy decisions based on economic conditions rather than short-term political considerations. Undermining that independence could damage the Fed's credibility, destabilize markets, and blur the separation of monetary policy from electoral politics.
Economically, Trump has pushed Powell to aggressively cut interest rates, despite relatively low unemployment and elevated inflation. If Trump succeeds in firing Powell or weakens the Fed through constant public pressure, it could increase uncertainty and volatility in financial markets, risking damage to the economy.
Meanwhile, in the world of stocks, the S&P 500 added 0.4% to 6,388, making a new weekly closing high. The Nasdaq Composite rose 0.2% to 21,108, also setting a new weekly closing high. The Dow Jones Industrial Average closed at 44,901, up 0.5%. Materials and industrial stocks led to the upside.
In other business news, Intel forecast third-quarter revenue of $12.6 billion to $13.6 billion. The company's 14A technology is being developed in partnership with large external customers. However, Intel warned investors it might be forced out of the chip-making business if it doesn't attract more customers to support its next-generation manufacturing process.
Newegg Commerce (NEGG) had a market capitalization of $598.2 million as of July 24. Notable investors such as Vladimir Galkin, who made an investable fortune on GameStop and took a big position in JetBlue Airways, are buying NEGG stock.
Expectations for interest rates remain more tied to traditional factors. The yield on the 2-year Treasury note ended the week at 3.917%, while the yield on the 10-year U.S. Treasury note was at 4.384%. The 30-year yield was as high as 4.979% Friday.
In the health sector, UnitedHealth Group was among the top 10 of the 30 Dow Jones stocks. The company reported a loss of 10 cents per share on revenue of $12.9 billion. Energy and communication services stocks lagged the pack.
Nvidia notched a new all-time intraday high. Investors are keeping a close eye on the company as it continues to lead the way in the technology sector.
In summary, the question of whether Trump can fire Powell remains pertinent, with legal experts suggesting that any attempt without a valid cause could trigger significant legal and financial market turmoil and undermine central bank independence. The Federal Reserve’s role as an independent technocratic institution is crucial to maintaining economic stability and credible monetary policy.
- The independence of the Federal Reserve, a key factor in maintaining economic stability and credible monetary policy, could be undermined if President Trump attempts to fire chair Jerome Powell without a valid cause, according to legal experts.
- In the world of decentralized finance (defi), the market capitalization of Newegg Commerce (NEGG) was at $598.2 million as of July 24, and notable investors are buying the stock, reflecting the ever-evolving nature of technology-driven financial markets.
- As the question of whether Trump can fire Powell continues, the consensus in the market seems to lean towards the idea that such a move could trigger significant legal and financial market turmoil, potentially impacting the broader economy and monetary policy decisions.
