What we’re reading (7/16)
“Trump Says ‘Not Planning’ Fire Fed Chair Powell After Reports Suggest Powell Ouster Coming ‘Soon’” (Yahoo! Finance). “President Trump on Wednesday tempered reports from earlier in the day that suggested he planned to fire Federal Reserve Chair Jerome Powell imminently, the latest twist in the ongoing saga regarding Trump's displeasure with the central bank head.”
“Wall Street CEOs Stress Fed Independence Amid Powell Attacks” (Bloomberg). “Bank of America Corp.’s Chief Executive Officer Brian Moynihan and Goldman Sachs Group Inc.’s David Solomon joined JPMorgan Chase & Co.’s CEO Jamie Dimon in stressing the importance of the Fed’s autonomy. Moynihan said in an interview with Bloomberg TV on Wednesday that the Fed was ‘set up to be independent.’”
“The Market’s Been Wrong On The Fed For Three Straight Years — This Deutsche Bank Strategist Says It’s Now Looking Like Four.” (MarketWatch). “Henry Allen, macro strategist at Deutsche Bank, warns ‘inflation risks are still being underestimated, with a remarkable complacency across key assets…[t]his is particularly so when you consider that the 2021-23 inflation spike wasn’t anticipated at all in advance. And it’s already the 4th year in a row (so far) that markets have overestimated how dovish the Fed are going to be,’ said Allen, in a note to clients on Wednesday.”
“Why Tariffs Won’t Kill Corporate Earnings” (Axios). “The second-quarter earnings season kicks off Tuesday with some of the major banks set to report. While tariffs are likely to come up through this cycle, it's not the main focus for investors…Wall Street has moved on from the trade war. The question is whether consumer spending effects that show up this earnings cycle will force investors to reckon with the real-world impact of the levies.”
“United Airlines Issues New 2025 Forecast As CEO Says ‘World Is Less Uncertain’” (CNBC). “United Airlines’ second-quarter earnings beat estimates, and its CEO said travel demand is picking up after a rocky start to 2025. Travel demand, particularly from more price-sensitive customers for domestic flights, had come in weaker than airline executives expected at the start of the year, sending airfares lower. ‘The world is less uncertain today than it was during the first six months of 2025 and that gives us confidence about a strong finish to the year,’ CEO Scott Kirby said.”
