Real Vision: Finance & Investing Trump Fires Fed Governor, Weak US Manufacturing, and French Political Turmoil: PALvatar Market Recap, August 26 2025
Aug 26, 2025
In a dramatic market recap, President Trump's dismissal of Fed Governor Lisa Cook raises alarm bells about central bank independence. The decline in U.S. durable goods orders highlights ongoing manufacturing challenges. Meanwhile, France faces political instability and faltering consumer confidence, further complicating the economic landscape. As global tensions rise, investors remain cautious amidst tariff concerns and an unclear monetary policy outlook. Stay informed on these pivotal shifts shaping the financial world.
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Reassess Exposure After Fed Shock
- Reassess portfolio exposure to rate-sensitive and politically exposed assets after the Fed governance shock.
- Monitor tariff developments and macro data for signs of further manufacturing deterioration.
Fed Independence Under Question
- President Trump firing Fed Governor Lisa Cook has injected doubt about the Fed's independence.
- Markets turned cautious as investors reassess future monetary policy paths amid political interference.
Manufacturing Demand Still Weak
- Durable goods orders fell 2.8% in July, extending manufacturing weakness.
- The decline follows aggressive tariffs earlier in the year that continue to weigh on industrial activity.