Core Viewpoint - President Trump publicly announced the dismissal of Federal Reserve Governor Lisa Cook, marking the first time in the Fed's 111-year history that a sitting president has fired a board member [1][3] Group 1: Dismissal of Lisa Cook - Lisa Cook, an economist and the first Black woman to serve on the Federal Reserve Board, stated that Trump does not have the authority to dismiss her and intends to continue her duties [3] - Cook's lawyer announced plans to sue Trump over the dismissal [3] Group 2: Market Reactions - Despite a relatively calm response from the U.S. stock market, the bond market showed signs of investor concern, with the yield curve for U.S. Treasury bonds reaching its highest level in three years [3] - On August 26, the yield on 2-year Treasury bonds fell by 0.04%, while the yield on 30-year bonds rose by 0.06%, creating a spread of 1.25 percentage points [3] Group 3: Historical Context and Implications - Historical instances of presidential pressure on the Fed, such as during the Nixon administration, led to poor monetary policy decisions and prolonged inflation [4] - Trump's actions have raised concerns about the independence of the Federal Reserve, with analysts suggesting that his potential control could destabilize U.S. monetary policy and have global repercussions [6] - Experts warn that if Trump wins the legal battle for control over the Fed, it could signify the end of the Fed's independence, which may lead to regret for the country [6]

Group 1 - The US Treasury market has experienced significant volatility this year, driven by concerns over rising government deficits, tariff disputes, and changes in foreign buyer demand [1][3] - Investor panic has been primarily fueled by worries regarding Trump's tariff policies and the expanding US budget deficit, which may lead to higher inflation and sustained high interest rates [3][4] - The French bank Société Générale anticipates that the current turmoil in the US Treasury market is unlikely to end in the short term, with major developments expected to impact the market [1][4] Group 2 - Key developments to watch in the US Treasury market include a surge in new debt issuance as the government increases borrowing and the Federal Reserve continues quantitative tightening [4] - The demand for stablecoins, supported by short-term US Treasury bills, may boost demand for government bonds, with stablecoin issuers' asset management expected to grow significantly [4]

Core Viewpoint - The article discusses the significant impact of tariff policies on the global financial market, particularly focusing on the U.S. technology sector and the broader economic outlook amid ongoing uncertainties [2][11]. Group 1: Tariff Policies and Market Reactions - The Trump administration's decision to exempt certain consumer electronics and key components from tariffs is seen as a major relief for the U.S. technology sector, preventing a potential collapse [3][4]. - The S&P 500 index experienced a notable increase of 5.7% this week, marking its best weekly performance in November 2023, with the Nasdaq rising by 7.29% [5]. - The volatility in the market is expected to continue due to uncertainties surrounding tariff policies and the recent sell-off in U.S. Treasury bonds [6][11]. Group 2: Economic Forecasts and Predictions - Analysts predict a significant slowdown in U.S. economic growth, with forecasts for GDP growth in 2025 ranging from 0.1% to 0.6% and unemployment rates potentially rising to nearly 5% next year [11][12]. - The consumer confidence index dropped sharply from 57.0 in March to 50.8 in April, indicating deteriorating consumer sentiment amid rising inflation expectations [9]. - High inflation and deteriorating financial conditions may prompt the European Central Bank to lower interest rates multiple times throughout the year [10]. Group 3: Upcoming Financial Reports and Events - Major tech companies, including ASML and TSMC, are set to release their quarterly earnings next week, which could further influence market sentiment [4]. - Federal Reserve Chairman Jerome Powell is scheduled to speak next week, with expectations that he will address the impacts of tariff policies and recent market volatility [9].