July 24, 2025 - Trump Targets Fed Amid Economic Turmoil and Legal Setbacks

Trump Visits Federal Reserve, Intensifying Pressure on Powell

President Trump is scheduled to visit the Federal Reserve today, a move that amplifies his ongoing criticism of Fed Chair Jerome Powell. The President has previously labeled Powell a "numbskull" and has suggested potential removal from office. While the White House did not confirm a meeting between Trump and Powell, the visit is perceived as a direct challenge to the Fed's independence. This development follows allegations of mismanagement and potential fraud in the Fed's renovation projects, which have faced significant cost overruns.

Federal Appeals Court Blocks Trump's Birthright Citizenship Order

In a significant legal ruling, a federal appeals court has declared President Trump's executive order attempting to end birthright citizenship unconstitutional. The court's decision reaffirms the interpretation of the 14th Amendment, marking a setback for the administration's immigration policies. This ruling has intensified scrutiny over the President's connections to the Jeffrey Epstein case, with new revelations prompting further investigations.

U.S. Business Activity Rises Amid Tariff-Induced Inflation Concerns

U.S. business activity showed improvement in July, driven by growth in the services sector. However, manufacturing experienced contraction for the first time since December. The imposition of new tariffs has led to increased costs, with nearly two-thirds of manufacturers reporting higher input prices. These developments have raised concerns about rising inflation, potentially complicating the Federal Reserve's policy decisions.

Stock Market Reacts to Mixed Earnings and Trade Policy Developments

U.S. stock futures are exhibiting mixed signals as investors digest recent corporate earnings and the administration's trade policies. Tesla's shares dropped nearly 6% following a second consecutive quarterly revenue decline, while Alphabet's stock rose over 3% due to strong performance in its cloud and search businesses. Additionally, President Trump's announcement of new tariffs ranging from 15% to 50% on trading partners has added uncertainty to the market outlook.

Global Markets Respond to U.S. Trade Agreements

Global markets have shown positive movement in response to recent trade agreements between the U.S. and countries like Japan, the Philippines, and Indonesia. These deals have alleviated some concerns over President Trump's tariff policies. European and Asian markets, including those in Tokyo and Singapore, reached new record highs, reflecting increased investor confidence.

Looking Ahead

As President Trump meets with Federal Reserve officials today, the financial community will be closely watching for any signals regarding future monetary policy. The administration's ongoing trade negotiations and recent legal challenges are likely to continue influencing both domestic and international economic landscapes. Additionally, developments in the Epstein case and potential policy shifts on birthright citizenship may have lasting implications for the administration's agenda.