Federal Reserve Chair Jerome Powell shouldn't attend upcoming Supreme Court arguments regarding President Donald Trump's efforts to fire one of the central bank's governors, Treasury Secretary Scott Bessent said Tuesday. CNBC reported Monday, citing a person familiar with the matter, that Powell plans to be present for oral arguments in a case that challenges Trump's power to remove governor Lisa Cook. "I actually think that's a mistake," Bessent told CNBC's Joe Kernen in an interview from the World Economi ...

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]