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.
