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What We’re Watching: Trump says he’s firing a Fed governor, French PM faces the guillotine, Botswana declares public health emergency

​Federal Reserve Governor Lisa Cook in Jackson Hole, Wyoming, USA, on August 23, 2025.

Federal Reserve Governor Lisa Cook attends the Federal Reserve Bank of Kansas City's 2025 economic symposium in Jackson Hole, Wyoming, USA, on August 23, 2025.

REUTERS/Jim Urquhart
Senior Writer
https://x.com/zac_weisz
https://www.linkedin.com/in/zachary-weisz-2ab852119/

In latest attack on Fed, Trump says he’s firing a governor

US President Donald Trump said he’s firing Federal Reserve governor Lisa Cook, citing alleged false statements on her mortgage agreement as cause for her sacking. The legal authority for this move is unclear. Cook, the first Black woman to be on the Fed’s board of governors, said the president has no authority to remove her, and her lawyer vowed to reverse her dismissal. The president had repeatedly targeted Cook in recent days, the latest move in a series of extraordinary attacks on the Fed’s independence since he returned to office. The move prompted a sell-off of long-term US government bonds.


French Prime Minister faces likely ouster, markets reel

Prime Minister François Bayrou has called a confidence vote for Sept 8 on his €44 billion deficit-cutting budget — a move widely expected to topple his minority government, as key opposition factions have vowed to vote against him. If Bayrou loses, France would face another government collapse, prolonging political gridlock and raising the risk of snap elections that could hand the right wing an outright majority. Markets reacted immediately: France’s 10-year borrowing costs surged to 3.53%, and the CAC 40, France’s benchmark stock index, fell for a second straight day.

Botswana declares public health emergency

A shortage of medicines and medical equipment, including for cancer and tuberculosis treatments, prompted Botswana President Duma Boko to declare a nationwide public health emergency yesterday. A country of 2.5 million people in southern Africa, Botswana has suffered badly from a downturn in the diamond industry, fueling unemployment and poverty. US aid cuts have exacerbated these issues: the United States used to fund a third of Botswana’s aid response, per UNAIDS. The shortages are a major test for Boko, who is in his first year office after ousting the party that had governed for 58 straight years.