Squawk on the Street SOTS 2nd Hour: Trump-Lisa Cook Conflict, Jefferies’ David Zervos, & LIVE: Interactive Brokers’ Thomas Peterffy 8/26/25
Aug 26, 2025
David Zervos, Chief Market Strategist at Jefferies, dives into the tense political scene as President Trump and Fed Governor Lisa Cook clash over authority. They explore the implications for Federal Reserve independence amidst shifting market dynamics. Zervos also shares insights on stocks amid volatility and discusses Interactive Brokers' impressive S&P 500 inclusion. Plus, the conversation highlights Eli Lilly's promising obesity pill data and the transformative impact of AI on finance, reshaping traditional modeling techniques.
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Trump Versus Fed Independence
- President Trump announced he was firing Fed Governor Lisa Cook but Cook said he had no authority and would not resign.
- The situation raises constitutional and market questions about presidential power over the Fed and possible court involvement.
Legal Fight Could Reshape Fed Board
- The removal's legality is unclear and could be decided by courts, with markets treating it as limited so far.
- If removal stands, Trump's nominees could shift the Board's balance and influence monetary policy direction.
Monitor Data And Fed Legal Developments
- Watch Fed-related court rulings and upcoming economic data to assess policy risk to markets.
- Monitor Sept/Oct rate-cut probabilities and employment reports for trading implications.