Bloomberg Daybreak: Europe Edition Fed's Cook Won't Be 'Bullied', Possible UK Home Tax, Vape Ban Failings
Aug 21, 2025
Federal Reserve Governor Lisa Cook stands her ground against pressures from Donald Trump amidst mortgage fraud allegations. Inflation concerns are overshadowing labor market worries among central bank officials, raising questions about the tech sector's recent dip. In the UK, a proposed tax on high-value family homes may soon be in the works to address budget deficits. Meanwhile, ongoing discussions among European leaders revolve around military support guarantees for Ukraine. Lastly, the UK's vape ban is proving ineffective, as users continue to treat refillable devices like disposables.
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Fed Governor Refuses To Bow To Pressure
- Lisa Cook resisted political pressure and said she will gather facts to answer legitimate questions about her mortgages.
- Her stance raises stakes because any exit would give President Trump another Fed board vacancy to fill.
Inflation Still Dominates Fed Concerns
- Fed minutes showed officials viewed upside inflation risk as bigger than labour-market weakness at the July meeting.
- That tilt explains why policymakers held rates steady despite concerns about jobs and incomes.
Tech Rally Shows Bubble Risks
- Tech stocks slipped with the NASDAQ and MAG7 entering the longest losing streak since April.
- Strategists warn heavy tech concentration could turn a sector rotation into a broader market rout.