Trump cooking up a storm at the Fed

This week the CBO published updated projections showing that tariffs are now expected to raise $3.3 trillion over the next ten years, which would almost exactly offset the impact of the budget reconciliation and would leave the budget deficit broadly unchanged at close to 6% of GDP. Otherwise, Trump launched another attack on the Federal Reserve this week, aiming to oust Fed Governor Lisa Cook over mortgage fraud allegations. A Trump replacement would tilt the balance of the Board of Governors in Trump's favour, raising concerns over Fed independence. The market reaction has been muted, and while a court ruling for Trump could undermine credibility, a Cook win might reassure investors that Federal independence remains somewhat intact.