Firing Lisa Cook a 'distraction and side show for the Fed', says fmr. Atlanta Fed President Lockhart

Fed Policy & Interest Rates - The market interprets Fed Chair J Pal's statements in Jackson Hole as widening options, suggesting a rate cut could be considered based on recent data, but it was not a commitment [10][11] - A rate cut is worthy of consideration by the committee [10] - The committee is likely to wait for the total data picture in mid-September before making decisions [9] Lisa Cook Situation & Fed Credibility - The situation surrounding Lisa Cook's potential removal is a distraction and a sideshow that is not good for the credibility of the Fed and its focus on mandated objectives [6] - Lisa Cook is expected to resist the dismissal, claiming it is wrongful termination, potentially with the Fed's backing [5] - The White House believes they have the authority in this situation [5] - The central question revolves around the definition of "for cause" and whether it applies to actions before Senate confirmation [2] Market Reaction - The market's lack of strong reaction to the Lisa Cook situation is not surprising, as it is seen as part of a pattern of actions designed to pressure the Fed to lower interest rates [7] - The market may be waiting to see how the situation plays out, considering Lisa Cook is just one vote on the FOMC [8] Economic Data - The economic picture is mixed, with some good numbers in capital goods orders [9] - There is a need to avoid overreacting to one labor report, with more data to come in September [9]