Lisa Cooked

Tuesday, August 26th, 2025

World News — Trump Fires Lisa Cook From the Fed

FT

Donald Trump announced Monday night that he is firing Federal Reserve Governor Lisa Cook "effective immediately," citing allegations that she made false statements on mortgage agreements and claiming constitutional authority to remove her for cause. This unprecedented attack on Fed independence escalates Trump's broader assault on the central bank, following his criticism of Chair Jay Powell and recent firing of the Bureau of Labor Statistics head, and could trigger a constitutional standoff if Cook resists since legal experts believe the administration would need to prove "cause" in court while the Supreme Court has previously indicated presidents lack authority to remove Fed governors.

Tech — Will Google Be Broken Up? 

Bloomberg

Google faces the possibility of a forced breakup after losing a major antitrust case in 2024, where US District Judge Amit Mehta ruled that the company illegally monopolized the search market by paying $26 billion to companies like Apple and Samsung to make Google the default search engine on their devices. The Justice Department is seeking remedies including forcing Google to sell its Chrome browser and license search data to competitors, which would mark the biggest corporate breakup since AT&T in 1984, while Google plans to appeal the ruling and has proposed narrower remedies that would modify its default search agreements rather than divest Chrome.

Economics — Trump’s Interest Rate Crusade Will Be Self-Defeating 

Economists

At this year's Jackson Hole conference, central bankers grappled with the threat to Federal Reserve credibility posed by President Trump's pressure campaign for interest rate cuts despite tariff-driven inflation, with many viewing his attacks on Fed Chair Jerome Powell and Governor Lisa Cook as undermining the central bank's independence. While some economists argued that credible central banks can ignore temporary price shocks and trust inflation expectations to remain anchored, Trump's political interference creates a dangerous precedent where public suspicion of political influence makes it harder to achieve both low rates and low inflation, particularly as America's mounting debt (nearly 100% of GDP) will likely lead future politicians of any party to pressure the Fed for easier monetary policy.

Culture — India Bans Fantasy Sport Games 

Economists

India's parliament has banned all money-based online fantasy sports games, dealing a devastating blow to a booming industry that included over 2,000 startups with collective revenues expected to double to around $7.6 billion in three years, citing concerns about addictive algorithms, financial ruin, and potential fraud despite the industry's claims that the games are skill-based. The hasty legislation, passed in just seven minutes without industry consultation, threatens significant investment losses for venture capital firms like Tiger Global that have poured hundreds of millions into platforms like Dream11, while potentially driving the industry's 200 million users to unregulated offshore sites and costing the government over 200 billion rupees annually in tax revenue—roughly 1% of all tax receipts.

The Daily Spark 

There are emerging signs of weakness in parts of discretionary spending in recent weeks—see chart below—which shows slowing year-over-year growth in consumer spending on motor vehicles and parts, sporting goods, bookstores, clothing, and furniture—sectors that are impacted by tariffs. 

Song Recommendation — navy blue 

Quote of the Day 

"A leader is a dealer in hope" — Napoleon Bonaparte