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Microsoft’s Satya Nadella says that the job cuts have greatly impacted him

Microsoft’s Satya Nadella says that the job cuts have greatly impacted him

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Microsoft has mainly focused on making significant investments in AI. This has resulted in the tech company laying off almost 15,000 workers this year. The pressure from this layoff has greatly affected Satya Nadella, the CEO of Microsoft.

In a memo to employees, Nadella addressed the recent job cuts, which he believes have raised controversy among individuals.

He referred to the situation as a threat that hinders success in an area with no franchise value. According to Nadella, progress is complicated: sometimes it experiences several changes while other times it is conflicting, all in all posing a challenge to the company’s operations.

Despite these challenges, the CEO highlighted some benefits behind the layoffs. He expressed that the layoffs acted as a new beginning to take a different turn, shaping one’s future and resulting in effective leadership. He concluded that layoffs significantly impact the company’s operations more than anything else.

Tech firms initiate increased layoffs in their workforce amid growing demand for AI

Following data from sources,  Microsoft started its operation with 228,000 workers in June 2024. A week earlier, it revealed intentions to lay off around 9,000 workers from its workforce. This has resulted in reduced investor confidence. On July 9, the stock’s closing price was over $500, creating an unstable situation that might greatly affect market prices to drop drastically.

The exact figures for this year’s layoff have not been made public. However, based on Satya Nadella’s argument, Microsoft’s workforce is still roughly unchanged.

Recent analysis has revealed that Microsoft’s act is a growing trend in the tech ecosystem, with several companies considering laying off their workers amid increased adoption of AI. Based on the analysis from sources, 80,000 positions in these firms have been eliminated.

Another example of a tech company that has adopted this trend is Recruit Holdings. The company revealed intentions to lay off around 1,300 jobs, mainly in its human resources technology unit, so that it can focus on making significant investments in AI. The unit comprises the Indeed and Glassdoor platforms, which entail job hunting and information on career opportunities.

Regarding the company’s large size, several Microsoft workers demonstrated disappointment with its decision to lay off employees on social media platforms.

One of the workers, a director at Microsoft, expressed that the company’s working experience was memorable. However, the worker said the company’s layoff action betrayed their loyalty. According to the representative, the company’s set value did not apply to its crucial decision-making processes. 

Nadella calls on the urgency to embrace Microsoft’s long-standing mission 

Microsoft has gained the most value in terms of global public company rankings. Still, Nvidia leads this ranking. This is because, as tech companies shift their focus towards AI, its chips are essential to sustain them in this tough competition. Microsoft’s increased value is driven by its Windows and Office products.

In a recent memo, Nadella explained that AI had transformed Microsoft’s long-standing mission. The mission was to push each and every individual and organization globally to strive for more.

The CEO called on the company to firmly embark on the mission. “What does it mean to empower people in the age of AI?” Nadella asked. Based on the question, he argued that the aim is not just to develop tools for certain jobs or tasks but to develop tools that allow everyone to make their own tools.

Nadella stressed the importance of embracing this vision — a shift from being a software factory to becoming an intelligence engine that empowers every person and organization to build what they need to thrive.

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Why did Trump reveal his $2B BTC stash after changing US crypto laws?

Why did Trump reveal his $2B BTC stash after changing US crypto laws?

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Trump Media and Technology Group announced that it had acquired $2 billion worth of Bitcoin and Bitcoin-related securities on July 21, 2025. This was just three days after President Trump signed the GENIUS Act.

The fact that this massive Bitcoin investment was kept hidden until after the law passed appeared to be part of a larger plan rather than a coincidence to critics.

The question on their minds is: Did Trump use his presidential power to change the rules in favor of crypto, only to reveal afterward that he had a massive personal stake in it? 

In other words, did he write the playbook and then make the first move once the game was rigged in his favor?

This question runs deep because the line between serving the country and personal interests gets blurred. It becomes especially concerning when a sitting president owns over half of a company that suddenly announces billions in crypto investments right after new laws are passed.

It’s now less about one company or one law and more about how power, money, and policy seem to move together in ways that leave regular people wondering if the system is fair. 

The Genius Act aims to make Bitcoin safer for investors

President Donald Trump handed both investors and crypto companies a powerful signal that the federal government now officially supports the growth of digital assets. He did so when he signed the GENIUS Act into law on July 18, 2025.

It requires companies that want to issue payment stablecoins to hold 100% reserves in cash or short-term Treasuries. This means a real, safe, and liquid asset must back every digital dollar they create.

Large Stablecoin issuers must also give regulators and the public insights into whether these companies operate safely and honestly. They must publish monthly public disclosures about their reserves and submit them to independent annual audits.

Furthermore, the new law prioritizes customer protection by banning misleading marketing. This includes claims that stablecoins are backed by the US government, federally insured, or legally recognized as currency. And users will be paid back first, ahead of any other creditors, if a company becomes insolvent.

But most importantly, the law prevents federal government officials, including the president, from issuing or promoting stablecoins while holding public office. 

The US government effectively signaled that it is ready to treat crypto as a permanent part of its financial future by officially welcoming one major digital asset into the regulatory fold. The infrastructure built under this act could soon provide legal clarity, financial bridges, and regulatory credibility to support other digital currencies, including Bitcoin.

Trump’s Bitcoin stash appears after laws change

President Donald Trump signed the GENIUS Act into law on July 18, 2025. Just three days later, on July 21, his privately linked company that owns the social media platform Truth Social made a major announcement. Trump Media and Technology Group revealed it had purchased approximately $2 billion worth of Bitcoin and Bitcoin-related financial products.

This tightly packed timeline has drawn intense public scrutiny. It raises questions about Trump’s intentions and the possible use of public power to protect and grow his private wealth.

Observers suspect the events were strategically planned to work together. The company had hinted as early as May that it was exploring a crypto treasury strategy and raising capital for future investments in digital assets.

But until after the legal and political environment had shifted in its favor, it never disclosed the actual purchase of Bitcoin, nor did it reveal the size of its crypto plans.

Critics suspect the president rewrote the game’s rules and then used that new structure to justify and reveal a high-stakes financial move that directly benefits him. They believe this because the company intentionally withheld the news.

This new Bitcoin purchase immediately increased the value of a company that Trump personally controls and profits from because he holds a 53% ownership stake in Trump Media. His move raises serious ethical questions about the role of the presidency in shaping financial markets. This is especially concerning when the person writing the policy stands to benefit financially from the outcome.

New rules help Trump grow his wealth

Trump’s sons, Donald Trump Jr. and Eric Trump, help run World Liberty Financial, another Trump-linked crypto firm. The company has launched its stablecoin, formed global partnerships, and attracted hundreds of millions in foreign investment.

Reports show the firm deals with foreign governments, blockchain billionaires, and companies with past legal troubles. This includes Binance, whose founder CZ pleaded guilty to money laundering in 2023 but remains closely tied to Trump-linked crypto ventures.

In one of the most controversial deals, World Liberty Financial helped facilitate a $2 billion transaction using its USD1 stablecoin. This occurred just weeks before Trump signed the GENIUS Act. Critics say these overlapping business interests, with his family so deeply involved, show a deliberate pattern of using public power to support private wealth.

Traditionally, presidents from both parties understood that public trust depends on drawing a clear line between the Oval Office and the boardroom. As a result, they placed their business holdings into blind trusts. This eliminated the appearance of personal gain from public policy by giving independent managers full control of their assets.

Yet, Trump rejected this tradition during his first term and still maintained direct financial connections with his companies after returning to office in 2025.

Ethics experts, government watchdog groups, and members of Congress say that even if no specific law was violated, Trump’s continued control over companies involved in crypto represents a serious breach of ethical norms. This concern is heightened because he also passed laws that benefit the industry. They point out that the president should not make decisions that boost the value of companies he owns or that his family runs.

Many experts warn that legality isn’t the only issue because Trump and his allies argue there’s nothing illegal about a president owning stock or having business interests as long as he discloses them. They emphasize that disclosure alone doesn’t address all ethical concerns. When the president personally profits from laws he helped create, it raises serious questions about fairness, transparency, and honest governance.

Trump Media says Bitcoin protects its future

Trump Media and Technology Group framed its investment as a bold move for “financial freedom” and a necessary step to protect itself from “ongoing banking discrimination.” 

The company’s official statement explained that traditional banks and financial institutions forced it to seek alternative paths that wouldn’t rely on politically biased gatekeepers. They did this by targeting Trump-linked businesses with unfair treatment, freezing accounts, and refusing to process transactions.

The company said it was taking a stand for economic independence, freedom of speech, and secure access to financial systems. It aimed to achieve this by moving a significant portion of its treasury into Bitcoin, beyond the reach of government pressure or Wall Street politics.

Trump Media’s financial records show that the company has faced serious problems since it began. It has struggled to earn steady advertising income and grow its user base. These challenges are especially clear on its main platform, Truth Social, which has failed to attract enough users and advertisers to compete with bigger social media companies.

Because of these ongoing problems, the company’s quarterly reports continue to show heavy losses. Its operating costs are much higher than the money it makes. On top of that, its stock price has dropped sharply since the early excitement, which has made its already weak financial situation even worse.

In the end, the company’s financial problems remain the same. Trump Media still makes very little money, its debt keeps growing, and its future is unclear. Now that so much of its value depends on Bitcoin, one of the most unpredictable assets in the world, the company is even more at risk than before.

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SK Hynix rides Nvidia AI wave to record Q2 earnings, beats out local rival Samsung

SK Hynix rides Nvidia AI wave to record Q2 earnings, beats out local rival Samsung

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SK Hynix is making record profits due to the increasing demand for AI chips, particularly from Nvidia. This performance has propelled it past its competitor, Samsung, in the high-end memory space. 

SK Hynix reported a major boost in Q2 earnings following rising demand for its AI-focused memory chips. The South Korean firm reported an operating profit of ₩9.2T, which is about $6.7B, for the second quarter, a 68% increase from the same period last year as demand for high-bandwidth memory (HBM) chips used in AI systems continues to rise.

Revenue rose 35% to ₩22.2T, about $16.1B, exceeding analyst forecasts of ₩20.6T, according to Yonhap Infomax.

SK Hynix outearns Samsung again in Q2

SK Hynix has outgained Samsung Electronics in advanced memory sales for the second quarter in a row, mainly because of its position as the leading supplier of HBM chips to Nvidia.

SK Hynix pointed out growing investment in sovereign AI, which refers to government efforts aimed at developing independent national AI infrastructure, as a source of demand in the future. The company’s shares went up by more than 2% in early trading, following the earnings release.

SK Hynix’s performance contrasts with that of Samsung’s, which projected a 56% profit decline in Q2. One of the major causes is its struggle to meet Nvidia’s strict requirements for its AI chips.

SK Hynix’s share price has tripled since the beginning of 2023, with Bank of America analysts forecasting further growth in global HBM revenue from $35.7B in 2024 to $57.5B in 2027.

SK Hynix rides Nvidia AI wave to record Q2 earnings, beats out local rival Samsung
Source: Google Finance

What does the memory chip market look like in 2026?

Despite SK Hynix’s momentum, analysts are pointing out potential risks further down the line. Analysts at Goldman Sachs reduced their rating for the company from “Buy” to “Neutral” in a note published last week. As more memory chip makers expand production, the competition is expected to intensify.

Goldman Sachs warned that HBM pricing could decline for the first time next year, as the market gets more saturated. SK Hynix’s reliance on Nvidia especially leaves it exposed to changes in customer strategy or pricing leverage.

This could become a problem if Nvidia decides to diversify suppliers or push for lower prices.

Analysts have also identified areas of opportunity for competitors like Samsung. Goldman Sachs stated that application-specific integrated circuit (ASIC) chips may become the fastest-growing segment in the HBM market.

As SK Hynix focuses on supplying Nvidia, it gives Samsung the opportunity to target companies building their own ASIC chips.Samsung may be able to benefit from Nvidia resuming shipments of its less advanced H20 AI chip to China.

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South Korea sidesteps recession with 0.6% Q2 growth

South Korea sidesteps recession with 0.6% Q2 growth

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South Korea avoided a technical recession with stronger-than-forecast Q2 2025 growth. The Bank of Korea’s (BOK) advance reading indicated that the world’s fourth-largest economy grew a seasonally adjusted 0.6% over the preceding quarter in the three months through June. That would be a strong bounce from the 0.2% decline in the year’s first three months.

Economists polled by Reuters had expected the economy to grow by 0.5%. Still, it exceeded those predictions slightly, showing its continuing strength in the face of international economic headwinds. GDP growth accelerated to 0.5% yoy vs 0% in Q1 (consensus 0.4%).

The quarter’s rebound helped South Korea avoid slipping into a second technical recession in a little over a year, in which there are two consecutive quarters of contraction in economic activity.

Previously, the BoK had already said that weak momentum will likely be posted on the back of softer world demand and geopolitical risks; however, Q2 GDP will now provide some more colour.

South Korea is experiencing weak growth but is expected to continue making modest gains despite ongoing uncertainty, supported by strong exports, steady consumption, and targeted government spending.

Government and consumers drive spending growth

Final consumption expenditure rose by 0.7% in the quarter. That’s a comparison to a literally -0.1% Q1 number. Private consumption increased by 0.5%, aided by a bump in purchases of motor vehicles and outlays in entertainment and sports. Analysts said this indicated that consumers felt more confident, partly because of moderate inflation and an easy labor market.

Government spending grew even faster, by 1.2%. A significant portion of that run-up was driven by rising health benefit outlays. In South Korea, public spending has firmly backed social policies and eased the burden of living, especially for low-income and working-class families.

The BOK said that stronger domestic demand, even if tepid, is essential to buoying the broader economy in the face of external headwinds, adding that higher inflation would be beneficial. Strong consumption was a shield against risks, including high oil prices, global trade slowdowns, and lingering uncertainty over China, South Korea’s top trading partner.

Exports surge ahead of major US deadline

South Korea also experienced strong external export growth in the second quarter. Exports of goods and services rose 4.2% in the quarter. This was a robust comeback, especially for a country enmeshed in complicated global supply chains and trade tensions.

The export sector led the charge among those semiconductors, followed by petroleum and chemical products. Tech is still coming back to life, and there’s renewed demand for memory chips after a long lull that got going in late 2023.

However, the reversal had come at an inopportune time for South Korea, which was barreling toward a critical trade deadline with the United States. If you do not have a trade deal by the first of August, South Korean goods going to America will get an extra 25% tax.” One source of risk is that the US is South Korea’s second-largest export market.

According to the World Bank, exports were about 44% of South Korea’s economy in 2023, a sign of how significant trade is to the country’s economic health. The South Korean government informed the United States that it would not compromise on its primary agricultural demands on beef and rice imports in the talks, but there is little time to reach an agreement.

The stakes are high. And if it doesn’t, that would filter back up into the industries again, autos and electronics, and stuff in the second half of the year could stall more than gain momentum.

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Musk defers xAI investment decision to Tesla shareholders

Musk defers xAI investment decision to Tesla shareholders

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Elon Musk has signaled that he will not unilaterally decide whether Tesla Inc. should invest in his artificial intelligence startup, xAI. Instead, the decision will be left to Tesla’s shareholders.

“Shareholders are welcome to put forward any shareholder proposals they’d like,” Musk said on Wednesday during Tesla’s second-quarter earnings call. His remarks came in response to a query on whether the electric car maker could fund or have a stake in xAI.

Musk had recently posted support for such a purchase on his own social media platform, X. But he was definitive on the question during the earnings call, saying in response to a question, “It’s not up to me.”

Vaibhav Taneja, Tesla’s chief financial officer, also reflected on the matter and said that it was not the platform to talk about it, suggesting that the company’s executives would leave the decision to the formal processes of its shareholders.

Tesla’s next annual general meeting is set for Nov. 6, potentially allowing investors a chance to bring up and vote on the issue. Musk did not say whether the proposal would appear on that agenda meeting, but said a vote was inevitable.

xAI expands further ties with Tesla

xAI, which was established by Musk in 2023, has yet to make significant headway in the incredibly saturated AI field. Unlike competitors like OpenAI, Anthropic, and Google DeepMind, xAI hasn’t signed any big corporate customers or made itself broadly available to developers.

Its main product is a chatbot named Grok, which has generated excitement for its potential as a way to plug into X. Grok is meant to be more cutting and sarcastic than the average chatbot. Musk has claimed that it is more “honest” than ChatGPT.

xAI isn’t a one-off; it already has a partnership with Tesla, despite what made news today. The startup is a Tesla Energy business customer and buys Megapack utility-scale batteries. Tesla has big plans for Grok in its vehicles, where AI will offer services to drivers and passengers.

The momentum behind xAI is also supported by Musk’s other venture-backed companies. Bloomberg reported that SpaceX is committing about $2 billion to xAI in June. There are doubts whether Tesla, Musk’s most valuable and publicly traded company, would invest in the AI venture.

Musk has previously made the point that Tesla shareholders should get in on some of xAI’s likely expansion, since the two companies have some degree of technological overlap and shared leadership. “It’s a good idea for Tesla’s shareholders to have an exposure to AI,” Musk wrote on X earlier this year.

Musk unveils more big plans for Tesla shareholders

This wouldn’t be the first time Tesla shareholders have been asked to vote on a controversial Musk-led proposal. In 2016, Tesla shareholders signed off on a $2.6 billion deal to buy SolarCity, a solar energy company founded by Musk’s cousins that was floundering at the time. That arrangement drew lawsuits and criticism for potential conflicts of interest, but Musk defended it as a long-term strategic decision.

Now, with Musk managing several companies, including Tesla, SpaceX, xAI, X, and Neuralink, among others, concerns about overlap and fair governance are flaring anew. Critics say Tesla, a public company with a fiduciary duty to shareholders, should be prudent in backing other Musk ventures unless there is a clear benefit.

Jumping back to 2023, Musk conducted an impromptu poll on X to see if users thought Tesla should pursue the development of xAI. A majority said yes. Musk later said that the company’s board would consider the possibility. But there has been no formal response — until now.

Should Tesla shareholders formally propose an investment and the motion be included in the upcoming annual meeting agenda, the vote would be an opportunity for a new chapter in Tesla’s strategy and a tighter alliance with Musk’s ever-expanding AI aspirations.

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AMD expects first deliveries by year‑end

AMD expects first deliveries by year‑end

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Advanced Micro Devices (AMD) has confirmed that its first shipments of next‑generation AI GPUs will start by the end of 2025, as the company gets set to re-enter the Chinese market by deploying top-tier cloud infrastructure.

Lisa Su, the CEO of AMD, revealed that they were receiving chips for their operation from Taiwan Semiconductor Manufacturing Co. (TSMC).

However, she stated that when these chips are produced at TSMC’s US facilities, they become more expensive than those produced at its other facilities.

During an Artificial Intelligence event held in Washington, the CEO broke this down, pointing out that the same chips sold in Taiwan facilities are now sold between 5% and 20% more in US facilities.

Lisa Su acknowledges the booming demand for AI chips in the tech sector 

The AMD CEO attended a crucial event that the All-In Podcast team hosted earlier. The event also held a consortium of tech executives and lawmakers, popularly called the Hill and Valley Forum. 

Su acknowledged a booming demand for AI chips in the tech sector during the event. She further pointed out prominent figures such as Sam Altman, the CEO of OpenAI, and Elon Musk, a founder of artificial intelligence startup xAI, who made significant investments in the AI sector.

Notably, AI accelerators are essential in this AI race for tech companies to solidify their position as global leaders in AI. They produce useful chips in developing and operating different AI models. 

Consequently, AMD and  Nvidia Corp. compete for these advantages encompassing AI accelerators in the markets.

Su commented on the accelerators’ market conditions. Based on her anticipation, following its impressive advantages and growing adoption across tech companies, its market will exceed $500 billion in just a few years. 

“You can determine if we have done well by looking at what we accomplished in five years,” she added.

Huawei eyes the Middle East and Southeast Asia for its AI chips expansion 

In the era of rapidly growing demand for AI chips in the tech sector, Huawei Technologies has devised a strategy to overtake Nvidia, a US-based chip maker, in the market. The company is extending its markets to the Middle East and Southeast Asia region with minor quantities of AI chips.

The Chinese tech company has taken an extra step to negotiate prices with its potential clients in the United Arab Emirates (UAE), Saudi Arabia, and Thailand concerning its AI chips, Ascend 910B, people familiar with the situation who wished to remain anonymous due to the confidential nature of the situation said.

Nonetheless, a deal has not yet been struck, as a situation has developed. According to reliable sources, the UAE has demonstrated zero interest in Huawei’s AI chip offer, while Thailand’s agreement status remains unclear.

This did not stop the tech company from achieving its goal of becoming a leader in AI. Therefore, it had to develop another approach. Huawei decided to entice customers with its offer of remote accessibility to CloudMatrix 384, one of China’s AI systems that uses the company’s advanced chips in its operations. However, their limited supplies hinder them from being exported.

The primary factor behind Huawei’s growing interest in the Middle East is its surging AI chips market. Apart from Huawei, Nvidia is also attracted by this factor.

Neither Thailand’s nor Saudi’s government spokesperson replied to a comment request.

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Jim Cramer does a 180 on meme stocks. What's that about?

Jim Cramer does a 180 on meme stocks. What’s that about?

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Wall Street’s Jim Cramer just flipped the script after years of bashing meme stocks like GameStop and AMC, by suddenly telling everyone on Tuesday night to stop shorting Kohl’s. Yeah, Kohl’s. The same department store chain that most people forgot even existed.

“The shorts have clearly overstepped their boundaries with Kohl’s. They’ve run into a buzz-saw of their own creation,” Jim said. “Even now, I think they’d be wise to cover their short and move on before they have another GameStop on their hands.”

That statement came right after Kohl’s stock went nuts. Trading was so volatile on Tuesday that it had to be temporarily halted. Once the dust settled, shares ended the day up a massive 37.62%. According to FactSet, roughly 50% of Kohl’s outstanding shares were sold short, making it a prime target for a squeeze.

Cramer calls out short sellers over Kohl’s stock surge

Let’s be clear. Jim wasn’t praising Kohl’s actual business. He straight-up said that the company’s partnerships with Sephora or Amazon weren’t driving the stock’s movement. Instead, he argued that the stock was being bought because of how heavily it was shorted.

According to Jim, this was purely a momentum play built around short interest. He pointed out that Kohl’s had been discussed on the WallStreetBets subreddit, the same place that sparked the infamous 2021 short squeeze. He said the playbook looked identical.

Back in 2021, the GameStop squeeze cost hedge funds close to $20 billion, driven by retail traders banding together online to force short sellers into panic-buying shares to close their positions.

And here’s the weirdest part: Jim used to hate this kind of stuff. He was one of the loudest voices calling out meme stocks as hype machines. He regularly said names like GameStop and AMC were being driven by emotion, not numbers. He dismissed the POTUS’ Trump Media & Technology Group (DJT) as “overvalued” and said the moves weren’t backed by revenue or profits.

Just a few years ago, Jim sided with the short sellers. He tried hard to talk down retail investor excitement during the GameStop frenzy. His 2021 take? Sell GameStop at $400. That got him roasted so badly online that a new meme was born: Inverse Cramer.

Retail traders started doing the exact opposite of what he recommended. It became a whole thing. He was mocked all over Reddit, especially in the r/WallStreetBets community, for being the poster child of outdated investment thinking.

So for him to now say hedge funds should “cover and move on” feels like a full reversal. He believes the short position doesn’t match Kohl’s fundamentals, or retail power. There’s debt, and sales are slipping, but the company isn’t falling apart. And that’s his issue. He doesn’t think the target makes sense if you’re betting on total collapse.

Jim also called out hedge funds directly, saying they should’ve closed their shorts earlier this year when the stock dipped after Wall Street panicked about President Donald Trump’s new tariffs. That spring sell-off, according to him, was the time to exit. Not now.

“In the end, the short sellers have the wrong target,” Jim said. “A company with declining sales and a lot of debt, but not one that’s about to fall apart, which is what you need if you were still shorting Kohl’s down here in the single digits.”

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Treasury Secretary Scott Bessent was the one who stopped Trump from firing Powell

Treasury Secretary Scott Bessent was the one who stopped Trump from firing Powell

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In a shocking turn of events, turns out Treasury Secretary Scott Bessent is the reason Jerome Powell still has a job today. While the White House was stirring chaos over the Federal Reserve chair, Scott stepped in behind the scenes, sat down with Trump, and made one thing clear: firing Powell would be a mess. And not the fun, ratings-friendly kind Trump likes, this one would backfire. Badly.

According to the Journal, Scott privately urged Trump to stay put, arguing that a high-profile showdown with the Fed chair, just ten months before Powell’s term ends, would do more harm than good. He laid out three points.

First, markets were stable, reacting well to Trump’s policies. Second, the Fed was already signaling two possible rate cuts this year. And third, firing Powell could trigger legal hell and a political fight that Trump doesn’t need during an election cycle.

Scott warned Trump about legal risks and GOP pushback

Trump had been toying with the idea of firing Powell for months. His frustration with the Fed was no secret. The president kept complaining that Powell was dragging his feet on interest rate cuts, which Trump believes are needed to reduce federal debt expenses.

But last week, it nearly escalated. A senior White House official told reporters that Trump had privately said he might go ahead and remove Powell. Hours later, Trump walked that back publicly, telling press he wasn’t planning to do so. But by then, the fire had already hit the markets.

Investors got spooked. Even the idea that a president might remove a Fed chair over a policy disagreement was enough to rattle confidence. And Scott knew it. So did Wall Street.

If Powell had been fired, the Fed’s independence would’ve been in serious doubt. The central bank has to make unpopular calls sometimes, and if its leader is seen as replaceable over policy differences, the whole structure begins to crumble.

But Scott didn’t just talk markets. He warned Trump that Powell wouldn’t go quietly. “If you fire him now, he’ll sue,” Bessent told the president, according to one person briefed on the conversation.

The lawsuit could last months, meaning Trump would get no benefit from the decision. Just headlines and headaches. And to be honest, he’s already getting a ton of that on his own anyway.

It doesn’t stop there. Firing Powell could leave the Fed leaderless. The Senate would need to confirm a new chair, but in August, most lawmakers aren’t even in D.C.

And even if they were, several Republican senators already made clear they oppose any attempt to remove Powell early. Senator John Thune told Fox News flat-out: “I think the markets want an independent Federal Reserve.” That kind of pushback could block any replacement Trump nominates.

And don’t forget who takes over if Powell leaves. The vice chair. Right now, that’s Philip Jefferson, a Biden pick and Powell ally. So Trump wouldn’t just lose a fight; he’d hand the keys to someone even less aligned with him. All of this is what Scott hammered home.

Other Trump officials want Powell out over office renovation costs

While Scott played defense, others in Trump’s camp are still looking for a way to push Powell out. Budget director Russell Vought is leading that charge. He’s focused on a $2.5 billion office renovation project that the Fed is overseeing.

The construction is behind schedule and over budget, and Vought is using that as ammo to build a case for “for cause” removal, a legal loophole that could sidestep the normal rules protecting Powell’s position.

As part of that effort, Trump recently placed three of his allies, including someone reporting to Vought, on a D.C. planning commission. That commission approved the Fed’s design plans back in 2021. Now they’re circling back, demanding site visits, and threatening audits.

Vought, when pressed, hasn’t denied that this could be a setup to boot Powell. But he’s been careful with his words, possibly to avoid drawing early legal challenges. Some advisers believe this construction saga could serve as grounds for firing Powell “for cause,” even though recent Supreme Court rulings have made that move harder to pull off.

Meanwhile, the Fed chair succession game has already started. Scott said last week that Trump is likely to get one or two picks early next year. It had seem, at some point, that the Treasury chief wanted the job for himself. But if WSJ’s report is to be believed, it was Scott who saved the global economy.

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ECB keeps its nerve as Trump ramps up global trade tension

ECB keeps its nerve as Trump ramps up global trade tension

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The ECB is refusing to blink. Even as Donald Trump threatens to slap a 30% tariff on imports and crank up global trade tensions, the European Central Bank decided Thursday it wouldn’t react just yet.

They’re locking rates at 2% and postponing any cut in borrowing costs. The move comes right before their seven-week summer break, with policymakers clearly choosing to wait and see if Trump’s threats actually turn into pain before they make a move.

The logic is simple: don’t rush. A lot of officials are about to disappear on holiday. They’d rather keep repeating that inflation is on target, park any panic until the next batch of economic projections is available for the September 10–11 meeting, and deal with it then.

That means no new action now, but no denial either that things are getting ugly. The euro’s getting stronger, which is hitting exporters and dragging down inflation forecasts. France’s messy budget problems are adding more heat at the worst time.

ECB watches data, ignores panic

Behind closed doors, the ECB knows the pressure is building. A rate cut in September is clearly back on the table, even if they keep hiding behind the usual “meeting-by-meeting” line.

President Christine Lagarde didn’t flinch in her statement Thursday, repeating that “risks to growth are tilted to the downside,” as flagged by Morgan Stanley economists in their preview titled Ready for the Beach. The coming week will pour in the data the ECB needs to weigh that risk.

On Tuesday, their own bank lending survey drops. Wednesday follows with a consumer confidence report, and Thursday will deliver purchasing manager indexes from all across the region, conveniently right before policymakers log off. Germany’s Ifo business confidence and Italy’s economic sentiment numbers wrap the week up on Friday.

Outside the euro area, more inflation data will fly in from Japan, Brazil, and others, while Bank of England chief Andrew Bailey will testify to UK lawmakers about financial stability.His appearance comes just as the UK drops public finance data on Tuesday and faces PMI figures and retail sales later in the week.

Global markets brace as central banks diverge

Over in the US, the economic calendar is light.A Wednesday housing report is expected to show barely any change in the sale of existing homes.

Numbers have been flatlined near a 4 million annualized rate, just slightly better than the 2010 post-crisis low. Thursday brings a report that might show a modest bounce in new home sales, after a brutal drop in June.But the truth is the US housing market is still locked in place.High mortgage rates and unaffordable prices are keeping buyers out.

Meanwhile, Canada’s economic mood gets measured through business and consumer surveys this week. They’ll give insight into inflation fears and investment trends. Retail sales data for May and June could also confirm that shoppers are retreating, especially after tariffs spiked car purchases earlier in the year.

In Asia, everyone’s scrambling to make sense of global trade chaos. South Korea opens the week with export data, followed by confidence and retail numbers. China will keep loan prime rates steady for the second straight month.

Over in Africa, South Africa will show June inflation is likely up to 3.1% from 2.8%, thanks to meat prices. In Nigeria, the central bank will likely keep rates frozen at 27.5%, for the third straight time, with inflation still hot at 22.2%.

In Latin America, Argentina releases its May GDP-proxy Monday. April saw a 1.9% monthly jump and 7.7% year-over-year, helped by President Javier Milei’s move to loosen currency controls tied to a $20 billion IMF deal. Analysts now expect Argentina’s second-quarter GDP to grow 8%, and third quarter by 4.2%, according to Bloomberg.

Mexico is under pressure too. The Tuesday GDP-proxy print will follow April’s surprise strength, and inflation eased in June, finally, and the central bank has hinted it may now slow its easing plans.

Brazil will close the week with its mid-month inflation report, likely down for a third straight time, driven by sky-high borrowing costs. But expectations for 2025 inflation are still above target.

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BoE tells banks to brace for dollar shock

BoE tells banks to brace for dollar shock

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The Bank of England (BoE) has asked several banks to assess their resilience to potential US dollar shocks, as concerns over Trump’s policies on global financial stability grow.

Trump’s departure from long-standing US positions on free trade and defense has rattled confidence in the dollar—the world’s dominant reserve and trade currency—sending shockwaves through global markets.

The uncertainty has also reached lawmakers, who debate whether continued reliance on dollar distribution is sustainable amid rising economic risks.

Uncertainties surround the US dollar as nations rethink their reliance on the country 

The US Federal Reserve has asserted that the central bank will continue using dollars in its operations. However, following Trump’s policy shift, the US’s European trading partners are rethinking their reliance on the country.

The European regulators have gone to the extent of triggering the Bank of England, the central bank responsible for maintaining monetary and economic stability for the country, to emphasize to lenders the urgency of assessing their dollar funding approach in their operations. Moreover, according to sources familiar with the situation, it has also requested them to examine their reliance on the currency for short-term needs.

Considering the intense nature of the situation, a Britain-based global bank was recently requested to conduct an internal stress test on the possibility of a shutdown for the US dollar swap market.

Richard Portes, an economics professor at London Business School and a former Chair of the Advisory Scientific Committee for the European Systemic Risk Board, mentioned that in a worldwide dollar funding crisis, the Fed may be reluctant to provide swaps due to concerns about a strong reaction from Trump. Portes explained that the Fed mainly focuses on keeping monetary policy independent.

He further urged the supervisors of foreign banks to encourage their banks to reduce their dollar exposures drastically.

In response to Portes’s statement, the Prudential Regulation Authority, the supervisory part of the Bank of England, requested separate information from several banks concerning the situation, people with knowledge of the matter who wished to remain anonymous due to the confidential nature of the situation said.

When asked to comment, neither the Bank of England’s representative nor the global UK banks ‘ spokespersons that operate in banks such as  HSBC, Standard Chartered, and Barclays respond to a request for comments.

Contrastingly, a spokesperson from the White House responded to a request for comment. In a statement, the spokesperson mentioned that during President Trump’s administration, several markets and investors demonstrated strong confidence in the US dollar. 

The spokesperson based the argument on the increase in bonds, stocks, and historic investments that have increased to trillions of dollars since Trump’s election day.

Analysts express concerns about the US Fed’s financial stance

Earlier assessment of internal stress test on the US dollar revealed that euro zone banks required approximately one-fifth of the currency in their operations. The assessment also revealed that they highly rely on financial borrowing from short-term markets, which are unreliable in an economic crisis.

For example, European central banks have significantly borrowed funds from the US Federal Reserve. This is where the US dollar comes from, highlighting their reliance on the currency to fill their financial gaps.

Interestingly, the US Fed has several loan programs that apply to the ECB, among other US partners. This aims to address the global US dollar shortage and prevent the effects of financial hardship from hitting the country.

Two reliable sources have highlighted that the US Fed never stopped indicating support for these safety precautions. Despite this, some sources suggest the possibility of the Fed shifting this stance.

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