TL;DR

Trump moves to oust Fed’s Cook; markets price Fed policy risk; crypto, gold miners, CRO rally.

Highlights

• Trump attempts to fire Fed Governor Lisa Cook, triggering a legal dispute over Fed independence; markets see dollar weakness, Treasury curve steepening, and global equity declines1.
• Trump administration signals imminent Fed Board majority and calls for lower rates, raising expectations for policy shifts2.
• US Treasury’s $69B 2-year note auction draws strong demand, with high indirect (foreign) participation and a stop-through yield3.
• US durable goods orders fell 2.8% in July (less than expected); core capital goods orders and shipments rose, indicating ongoing business investment; housing price indices show continued cooling4.
• Conference Board labor-market differential drops to 9.7, the weakest since early pandemic, pointing to a softening US job market5.
• White House signals more government equity stakes after $9B Intel deal, with defense contractors like Lockheed and Boeing under discussion6.
• Commerce Department to publish GDP data on blockchain; officials highlight pro-crypto stance and bullish Bitcoin outlook7.
• Trump Media, Crypto.com, and Yorkville launch $6.4B Cronos (CRO) token treasury SPAC; CRO surges 25%, Trump Media shares up12.
• Canary Capital files for spot Trump Coin ETF; SEC reviewing multiple memecoin ETF applications11.
• Gold miners (GDX ) rally 80% YTD, outpacing gold ’s 26–28% gain as investors seek yield and M&A exposure13.
• Tesla expands Austin robotaxi zone to 170 square miles, nearly doubling coverage and surpassing Waymo16.
• Klarna revives US IPO plans at $13–$14B valuation, down sharply from 2021 peak14.

Commentary

The Fed’s independence is front and center after President Trump’s unprecedented move to remove Governor Lisa Cook, creating immediate legal uncertainty and market volatility1. The dollar weakened and the Treasury curve steepened, reflecting concerns about potential policy interference and expectations for a more dovish Fed as Trump seeks a Board majority12. These developments have weighed on global equities, with European markets particularly sensitive to both Fed uncertainty and France’s ongoing political turmoil10.

Despite the policy noise, demand for short-dated US Treasuries remains solid, as evidenced by a strong 2-year auction with robust foreign participation3. This points to continued investor preference for lower-duration risk amid rate and political uncertainty. On the economic front, July’s durable goods data was mixed: headline orders fell, but core capital goods orders and shipments rose, suggesting business investment is holding up4. However, labor-market signals are softening, with the Conference Board’s job differential at its weakest since the pandemic, raising the risk of higher unemployment and potentially reinforcing the case for rate cuts5.

The White House’s willingness to take equity stakes in US companies, following the Intel deal and with defense contractors under consideration, signals a more interventionist approach to industrial policy6. Meanwhile, the administration’s pro-crypto stance is clear: the Commerce Department will publish GDP data on blockchain, and officials are openly bullish on Bitcoin 7. Crypto-related news is driving outsized moves—Trump Media’s $6.4B CRO token treasury SPAC and new ETF filings have lifted both CRO and crypto-linked equities1211.

In sector news, gold miners continue to outperform physical gold , attracting flows as investors seek yield and M&A opportunities13. Tesla ’s rapid expansion of its Austin robotaxi zone highlights ongoing innovation in autonomous vehicles16, while Klarna’s revived IPO at a much lower valuation reflects both the reset in fintech multiples and a modest rebound in US listings14.

Traders should monitor late-session headlines on the Fed legal fight, crypto regulation, and global political risk. Expect continued volatility in the dollar , Treasuries, and crypto-linked assets as the market digests these developments17.