Key Takeaways:
- Fed Chair Jerome Powell is defending the central bank's $2.5 billion headquarters renovation amidst White House scrutiny, asserting its necessity and compliance with federal oversight.
- The People's Bank of China (PBOC) has set the USD/CNY reference rate significantly below market estimates, signaling continued efforts to support the yuan and curb its depreciation.
- The ASX 200 Index has reached a new record high of 8,720.3 points, rising 0.9%, driven by gains in the banking sector and expectations of an interest rate cut.
- Taiwan Semiconductor Manufacturing Company (TSM) shares listed in Taipei rose 2% after the company reported strong Q2 earnings, with profit soaring 61% due to robust AI demand.
- The U.S. Department of Justice plans to seek court permission to release grand jury transcripts related to the Jeffrey Epstein investigation, following requests from President Trump and Attorney General Pam Bondi.
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Fed Chair Jerome Powell has publicly defended the ongoing $2.5 billion renovation of the Federal Reserve’s Washington D.C. headquarters, responding to concerns raised by the White House. Powell stated the project is essential, approved in 2017, and compliant with federal oversight, including necessary structural upgrades like asbestos abatement and modernized safety systems. The controversy comes amid existing tensions between Powell and the Trump administration over monetary policy and interest rates.
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In a move to support its currency, the People's Bank of China (PBOC) set the USD/CNY reference rate at 7.1498 today, notably lower than the estimated 7.1736. This action by China's central bank indicates continued efforts to limit the yuan's depreciation and maintain exchange rate stability.
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The ASX 200 Index climbed 0.9% to a new record high of 8,720.3 points, with the rally primarily driven by gains in the banking sector. This market performance comes as weaker-than-expected jobs data in Australia has fueled expectations for an interest rate cut by the Reserve Bank of Australia next month.
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Taiwan Semiconductor Manufacturing Company (TSM) saw its shares rise 2% at the open in Taipei after reporting strong Q2 earnings. The chipmaker's net profit soared 61% to NT$398.27 billion ($13.52 billion), exceeding market expectations, largely due to robust demand for artificial intelligence (AI) chips.
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The U.S. Department of Justice is preparing to request court permission to unseal grand jury transcripts related to the Jeffrey Epstein investigation. This development follows President Trump's request to Attorney General Pam Bondi to provide all pertinent grand jury testimony, subject to court approval, citing the "ridiculous amount of publicity" surrounding the case.
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In other tech news, Elon Musk's xAI has indicated plans to increase investment in its Companions product, which allows users to interact with animated characters powered by its Grok AI.
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Meanwhile, California is suing the Trump administration over the termination of more than $4 billion in federal grants allocated for the state's high-speed rail project. State officials have called the withdrawal of funds "petty" and "political retribution," asserting that the funding commitments were legally binding agreements.
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Geopolitical tensions persist as Syrian media reports indicate that Israeli drones have targeted sites inside the Suweida Governorate in southern Syria.
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.