Financial markets are closely monitoring the political landscape as House Speaker Mike Johnson voiced his belief that "new leadership would be beneficial at the Fed," directly referencing Federal Reserve Chair Jerome Powell. This statement has fueled concerns over potential immediate market reactions if Powell were to be dismissed. Senator Elizabeth Warren (D-MA) criticized the focus on Federal Reserve building upgrades by former President Trump and Republicans, labeling it a "ruse to remove the Federal Reserve Chairman." Conversely, US Senate Republican Banking Committee Member Thom Tillis stated that dismissing a Federal Reserve Chair due to economic choices could harm the U.S. reputation.
In the technology sector, Scale AI, a key player in training data pipelines for major AI companies and the U.S. Department of Defense, announced significant job cuts. A company spokesperson confirmed that the reductions would affect about 14% of its global workforce, equating to approximately 200 full-time employees. This move comes shortly after a notable investment in the company by Meta Platforms (META).
Geopolitical tensions have escalated following a drone strike on an oilfield in Iraqi Kurdistan. Security sources reported the incident, which could have immediate implications for regional stability and global oil markets. This marks the latest in a series of attacks targeting energy infrastructure in the region.
On the automotive front, Volvo Cars, a subsidiary of Geely Automobile Holdings (0175.HK), is set to expand its manufacturing operations in the United States. The company plans to begin production of its popular XC60 SUV model at its U.S. plant in late 2026. This move signifies a strategic decision to bolster local production capabilities.
Adding a new dimension to retirement investing, former President Donald Trump is poised to sign an executive order that would allow 401(k) retirement plans to invest in private equity and alternative assets. This directive aims to provide guidance to the U.S. Labor Department and the SEC, potentially unlocking a vast new pool of capital for private markets.
In other economic news, Bank of England policymaker Catherine Mann reiterated her view that it will require "some effort" to bring inflation down, emphasizing that without supply-side growth, demand acts as a "sugar high" that "does not end well." Meanwhile, House GOP leaders are reportedly in discussions regarding the sequencing of three crypto bill votes, indicating ongoing legislative efforts in the digital asset space.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.