US Treasury Secretary Scott Bessent has called for an inquiry into the “entire Federal Reserve institution”
In the latest sign of how top Trump administration officials are cranking up pressure on the central bank. “What we need to do is examine the entire Federal Reserve institution and whether they have been successful,” Bessent told CNBC on Monday. Bessent’s comments come as Donald Trump and his lieutenants have sharply criticised the Fed and its chair Jay Powell for refraining to cut borrowing costs this year. Trump last week asked a group of Republican lawmakers whether he should sack Powell, but later clarified that he had no plans to do so unless he needed to “leave for fraud”. Trump’s government has also recently opened a new front in their campaign against the Fed, with the president’s budget director Russell Vought repeatedly alleging that a $2.5bn renovation of the central bank’s headquarters has been grossly mismanaged. Bessent amped up his criticism of the Fed on Monday, saying that if the Federal Aviation Administration had made as many mistakes, “then we would go back and look at why this has happened”. The Fed inspector general is reviewing the renovation of its headquarters, which involves an overhaul of two buildings that overlook the National Mall and is $700mn over budget. Powell has also written to senior senators to explain how the US central bank is reining in costs. Source: FT
World's Most Valuable Defense Companies
Source: Global Statistics
The ARK Innovation ETF is up 37% this year.
The SP500 is only up 7%. Meanwhile, over the past 12 months, the S&P500 is up 14%. ARKK is up 60%. The short interest in ARKK right now is the highest it's ever been. Source: J-C Parets, Trendlabs
The French government has launched a criminal investigation into Elon Musk’s X over 'the alleged manipulation of its algorithm' and 'fraudulent' data extraction, the social media platform said
Source: FT
Solana $SOL beaking out from multi-weeks base?
SOL/USD
⚠️ Japan House of Councillors Election – Key Takeaways for Markets & Policy
▶️ Political Setback: PM Shigeru Ishiba’s LDP-led coalition failed to secure a majority, increasing political uncertainty and likely altering fiscal and monetary trajectories. ▶️ Market Impact: Greater opposition influence may push for looser monetary policy, pressuring the BOJ to delay rate hikes. This could weaken the Yen further (note that this is NOT market's first reaction as the yen is strengthening today) and push JGB yields higher ▶️Fiscal Concerns: Opposition-backed tax cuts and cash handouts could deepen Japan’s already high public debt burden, risking credit rating downgrades and higher borrowing costs. ▶️ Geopolitical Risks: A weakened coalition may delay or derail a U.S.-Japan trade agreement ahead of the August 1st deadline, worsening trade tensions. 👉Investor Outlook: Expect a more fragmented & uncertain policy landscape. This could mean higher JPY & JGB volatility during the Summer.
10 Years ago, JPMorgan had a lower market cap than Wells Fargo.
Today, its market cap of $800 billion is higher than its 3 largest competitors (BofA, Wells Fargo, Citigroup) combined. Too big to fail? We're way past that. Source: Charlie Bilello
🔴 The US debt crisis is getting worse:
The US federal debt has hit $36.66 TRILLION, an all-time high. The public debt has skyrocketed $441 billion over the last 2 weeks after the statutory debt limit was extended. Over the last 2 years, the US debt has risen $5 TRILLION. Source: Global Markets Investor, Wolfstreet
