Overview

• In a Jackson Hole address, Jerome Powell said the balance of risks has shifted, warning of downside threats to employment and noting tariff effects are already visible in consumer prices.
• Stocks rallied on the remarks, with traders largely expecting a 25-basis-point cut in September and some forecasting two reductions by year-end, even as the White House called the shift too late.
• President Donald Trump demanded Lisa Cook resign from the Fed board and threatened to fire her, after FHFA chief Bill Pulte amplified mortgage-fraud allegations against her on social media.
• Corriere della Sera reported a Justice Department letter signed by official Ed Martin urging Powell to remove Cook “before it’s too late,” which Cook has rejected as she says she will not step down.
• If Cook were forced out, it would create a vacancy the president could fill—potentially with an ally such as Stephen Miran—while Senator Elizabeth Warren’s push for greater Fed accountability adds bipartisan momentum for governance changes.