A day of high drama is unfolding across global markets, as a series of stunning power plays from the White House jolts investor confidence.
President Donald Trump has launched an unprecedented assault on the independence of the US central bank and simultaneously unleashed a new wave of aggressive trade threats.
This turmoil is overshadowing a flurry of massive, multi-billion dollar investment deals being forged between the United States and its key Asian allies, creating a deeply uncertain and volatile landscape.
Here’s your one-stop stand to catch up on all the headlines you may have missed.
Trump’s assault on the Fed: governor Cook fired
In a move that reverberated from Washington to Tokyo, President Trump announced late Monday he was immediately removing Federal Reserve official Lisa Cook from her position on the bank’s board of governors.
In a letter posted on his Truth Social platform, Trump stated there was “sufficient reason” to believe she had made false statements and cited constitutional powers for her removal.
The move drew a swift and defiant response from Cook. “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said in a statement. “I will not resign.”
The market reaction was immediate. Gold, the ultimate safe haven, climbed as much as 0.6 percent on the news. The dollar weakened against every major peer, a clear sign of faltering confidence in the stability of US institutions.
The tariff hammer: China and Europe in the crosshairs
The assault on the Fed was not an isolated event. Trump also put the precarious US-China trade truce on notice, warning of steep new tariffs if Beijing curbed exports of rare-earth magnets.
“They have to give us magnets, if they don’t give us magnets, then we have to charge them 200 percent tariffs or something,” Trump told reporters.
He also threatened countries with digital services taxes with “subsequent additional tariffs” if they do not remove the legislation.
The alliance pivot: South Korea’s shipbuilding gambit
Amidst the turmoil, a different kind of dealmaking is taking shape. South Korean President Lee Jae Myung is in Washington, leaning heavily on promises to help “Make America Shipbuilding Great Again.”
In a clear effort to woo the Trump administration, shipbuilding has emerged as a key pillar of a pledged 350 billion dollar South Korean investment package, with a massive 150 billion dollars specifically earmarked for the sector.
The Japan pact: A $550 billion deal looms
Meanwhile, a colossal economic agreement with Japan is about to be formalized.
US Commerce Secretary Howard Lutnick revealed that an announcement is coming this week detailing a 550 billion dollar investment package from Japan into the United States.
“The Japanese agreement, which we’re going to announce later this week, that’s 550 billion dollars at the hand of Donald Trump,” Lutnick told Fox News.
The funds, part of a deal struck in July in exchange for reduced tariffs, could be used for US manufacturing of critical goods like semiconductors and antibiotics.
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