TL;DR

Powell mulls resignation; Fed rate cut timing in doubt; Firefly files for Nasdaq IPO.

Highlights

• Fed Chair Jerome Powell is reportedly considering resignation amid political pressure; no confirmation from the Fed 1.
• Fannie Mae Chair Bill Pulte publicly urges Powell to step down, citing potential for economic growth 3.
• S&P 500 slipped intraday on Powell speculation; Treasury Secretary Bessent and NEC Director Hassett mentioned as possible successors 3.
• Chicago Fed President Goolsbee warns new tariff threats could delay rate cuts; September cut odds trimmed 2.
• Firefly Aerospace files for Nasdaq IPO after successful moon landing, reporting $108M trailing revenue and $1.1B backlog 7.
• OpenAI’s $3B Windsurf acquisition collapses; Windsurf team joins Google DeepMind 5.
• Elon Musk’s xAI seeks funding at up to $200B valuation 6.
• Legendary Entertainment in early talks to acquire Lionsgate Studios post-Starz spinoff 4.
• U.S. imposes new visa sanctions on Cuban President Díaz-Canel and top officials; 11 hotels added to Cuba Restricted List 8.
• FBI Director Kash Patel and Deputy Dan Bongino consider resigning amid internal disputes over Epstein files 10.
• Pennsylvania’s 911 system faces statewide outages, disrupting emergency calls 11.

Commentary

Markets ended the week focused on leadership uncertainty at the Federal Reserve. Reports that Chair Jerome Powell is considering resignation, amid sustained political pressure and public calls from Fannie Mae’s Bill Pulte, injected volatility into equities and prompted speculation about possible successors 13. The S&P 500 ’s intraday dip reflects traders’ sensitivity to any perceived risk of policy disruption 3. Until the Fed issues a definitive statement, expect continued unease in rates and FX markets, with particular attention on Treasuries and the dollar.

Chicago Fed President Goolsbee’s comments on tariff risks further complicated the rates outlook. His warning that new tariffs could stall the first rate cut led futures traders to reduce expectations for a September move 2. This keeps the policy path in flux and could weigh on rate-sensitive sectors and duration trades as markets reassess the Fed’s reaction function.

In corporate news, Firefly Aerospace’s IPO filing stands out, with strong revenue growth and a substantial order backlog highlighting investor interest in commercial space and defense 7. The collapse of OpenAI’s Windsurf deal hands Google DeepMind new talent, while Musk’s xAI is seeking a major valuation step-up—both developments underscore persistent capital flows into AI 56. M&A speculation in media, with Legendary exploring a Lionsgate deal, may drive price action in the sector 4.

Geopolitical and regulatory headlines—such as new U.S. sanctions on Cuba 8, high-level FBI tensions 10, and Pennsylvania’s 911 outage 11—are unlikely to drive broad market moves but may impact select names in defense, infrastructure, and cannabis. Traders should monitor weekend headlines for any Fed confirmation or denial, as policy clarity will be key for Monday’s open.