U.S. Investors Overlook Trump's Attacks on Federal Reserve's Independence

Barry Adams
26 Aug, 2025
New York City

Wall Street indexes extended recent losses, and investors soured after the U.S. president ramped up his attacks on the Federal Reserve. 

The S&P 500 index decreased 0.2%, and the tech-heavy Nasdaq Composite dropped 0.3% amid growing realization that Donald Trump is looking to compromise the U.S. Federal Reserve's independence. 

The U.S. president, in a dramatic escalation of his attacks on the Federal Reserve, said he had fired Federal Reserve Board Governor Lisa Cook for the alleged "false statements" on one or more mortgage applications. 

Cook fought back and said, "I will not resign," and Trump "has no authority to do so."

Earlier in the month, Trump fired the U.S. Bureau of Labor Statistics chief because the latest nonfarm payrolls data revisions highlighted the negative impact his administration's policy on the labor market.  

The Trump's action to remove the head of one of the key data collection agency raises  questions about the future credibility of the U.S. data under his administration. 

The 10-year Treasury yield inched higher to 4.28% after Fed Chair Jerome Powell clarified that rate cuts next month are possible but not certain.  

 

July's Durable Goods Orders Reflect Tariff-Related Disruptions

On the economic front, U.S. monthly durable goods orders declined for the second consecutive month in July, but the pace of decline slowed from the previous month. 

Durable goods orders declined 2.8% to $302.8 billion in July, but slower than 9.4% fall in the previous month, according to the U.S. Census Bureau. 

The latest data reflected a softer period after firms front-loaded in May. 

Moreover, orders for non-defense capital goods, excluding aircrafts, a closely watched proxy for capital spending, increased 1.1%, higher than expectations of 0.3% increase. 

 

U.S. Stock Movers 

EchoStar Corp. soared 70% to $51.01 after the company agreed to sell its spectrum licenses for $23 billion to A&T.