Wall Street Breakfast Podcast: Trump Fires Cook, Threatens More Tariffs

Group 1: Federal Reserve Developments - President Trump fired Federal Reserve Governor Lisa Cook amid allegations of mortgage fraud, raising concerns about the Fed's independence under his administration [4][6] - Cook's dismissal could lead to a more dovish majority on the Federal Reserve Board, as Trump would have another opportunity to appoint a member [5] - The dollar experienced a nearly 0.4% drop following the news of Cook's firing, indicating market sensitivity to changes in Fed leadership [6] Group 2: Economic Indicators and Market Reactions - Stock index futures fell slightly, with S&P 500 futures down 0.1%, Nasdaq 100 futures down 0.1%, and Dow futures down 0.2% [3] - The 10-year Treasury yield rose by 2 basis points to 4.3%, while the 2-year yield fell by 2 basis points to 3.71% [4] - Upcoming economic data includes July Durable Goods Orders expected to decrease by 4%, and home prices projected to rise by 2.6% year-over-year in June [8][9] Group 3: Trade and Tariff Threats - President Trump threatened to impose substantial additional tariffs and export restrictions on countries with digital taxes targeting U.S. tech firms [9][10] - Digital services taxes (DSTs) in Europe disproportionately affect American tech giants like Apple, Alphabet, Amazon, and Meta Platforms, while exempting Chinese firms [10] Group 4: Federal Reserve Chair Nomination - Kevin Hassett, a potential nominee to replace Fed Chair Jerome Powell, indicated that Trump is expected to name the next head of the central bank in a few months [11] - Hassett noted that Powell's openness to a rate cut would not influence Trump's decision to extend Powell's term [11]