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Stocks recovered from Trump tariff & Powell panic; Gold slips

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  ·          The market is expecting an eventual 10% minimum Trump tariff for the EU against the present 30% threat ·          Trump’s latest threat of secondary sanctions on Russian oil may affect India and China if implemented after 50 days (the Ukraine war ceasefire issue) ·          The Fed may be united against Trump’s Powell tantrum The majority of Fed officials are supporting Powell's stance of wait & watch till at least August’25 ·          Trump has to clarify his tariff trajectory sooner rather than later, and continuously playing it back & forth for getting better deal ·          Overall, fine prints suggest Trump’s August tariff threat is around 7% lower than April (weighted average and share of imports basis)   On Saturday, July 12, 2025, US Pres...
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Wall Street slips on an imminent Powell resignation chatter

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  ·     The Trump admin may be plotting a coordinated strategy to force Powell to an early resignation over the Fed’s $2.5B HQ renovation project controversy ·          Trump needs an immediate lower borrowing costs desperately to refinance $9T of public debt (US TSYs) at lower borrowing costs by later this year ·          Trump is seeking 300 bps rate cuts in H2CY25 against the Fed’s present plan of 50 bps ·          Wall Street may slide on Trump’s EU tariff threat of 30% (against 10% expectations) and any sudden resignation by Fed Chair Powell On Friday, July 11, 2025, Wall Street slips in the last hour of trading on a rumor that Fed Chair Powell may resign within the next few days, even before the Fed blackout period starting from July 20. The FOMC meeting is scheduled for July 29-30. On late Friday, the Chair of the board of Fannie Mae...
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