Key Takeaways
- President Trump is vehemently calling for immediate interest rate cuts, asserting that rates should be at 1% and predicting Federal Reserve Chairman Jerome Powell's departure within eight months due to perceived high rates and "political reasons."
- U.S.-China relations are described positively by Trump, who noted that "magnets" are entering the U.S. at record numbers and that a meeting with President Xi is likely in the near future following an invitation.
- The Department of Justice (DOJ) is reportedly in discussions to interview Ghislaine Maxwell, a move supported by Trump, who stated it would be "appropriate" for the DOJ to seek information from her regarding others involved in the Jeffrey Epstein case.
- AstraZeneca (AZN) announced a substantial $50 billion investment in the United States by 2030, targeting manufacturing and research & development, including a major new drug substance facility in Virginia.
- Analysts foresee AMD's (AMD) AI chip revenue increasing fivefold by 2028, with the overall AI chip market potentially reaching over $500 billion by that year, suggesting significant growth potential for the company.
Trump's Economic and Judicial Commentary
Former President Donald Trump has intensified his criticism of the Federal Reserve and its current interest rate policy, advocating for an immediate reduction to 1%. He stated that current high interest rates are "hurting home buyers" and creating significant interest payments for the country. Trump also predicted that Federal Reserve Chairman Jerome Powell "will be out soon," specifically within eight months, suggesting Powell keeps rates too high "probably for political reasons."
Adding to the pressure on the Fed, Treasury Secretary Bessent echoed calls for rate cuts, suggesting the Federal Reserve should reduce interest rates "immediately" or "by September or sooner" and focus on its core role without interfering elsewhere. Bessent also criticized the Fed's building expenses, aligning with Trump's earlier remarks on federal building costs.
In a separate development, Trump commented on the ongoing Jeffrey Epstein case, stating that it would be "appropriate" for the Department of Justice to interview Ghislaine Maxwell. The DOJ has confirmed it is in discussions with Maxwell's counsel to facilitate such a meeting, indicating a commitment to pursue justice wherever the facts lead. Trump also made broader remarks about "going after people" after what he described as actions taken against him, and specifically mentioned he "would target Obama."
International Relations and Trade
On the international front, President Trump expressed a positive outlook on U.S.-China relations, noting that he doesn't "mind if he gets along with China" and that the two countries are "getting along very well." He highlighted that "magnets are coming in at record numbers" from China and indicated that a meeting with President Xi Jinping is likely "in the not-too-distant future," following an invitation from Xi.
Trump also held discussions with Philippine President Marcos Jr. at the White House, emphasizing "excellent military ties" and progress towards finalizing a "strong trade deal" between the two nations. President Marcos Jr. affirmed the U.S. as the Philippines' "closest ally," vowing to strengthen ties.
Corporate and Market Highlights
In significant corporate news, AstraZeneca (AZN) announced a massive $50 billion investment in the United States by 2030. This investment will bolster the company's manufacturing and R&D capabilities, including a multi-billion dollar drug substance manufacturing facility in Virginia, which is set to be its largest single manufacturing investment globally. The move is expected to create tens of thousands of new jobs and support AstraZeneca's goal of reaching $80 billion in revenue by 2030, with half generated in the U.S.
In the technology sector, analysts project substantial growth for AMD (AMD) in the artificial intelligence (AI) chip market. They anticipate the company's AI chip revenue to increase fivefold by 2028, with the overall AI chip market potentially exceeding $500 billion by that year. This outlook suggests significant upside for AMD if it can secure a 20% market share in the burgeoning AI sector.
Other notable developments include Mexico's plan to issue between $7 billion and $10 billion in debt to help Pemex raise funds, and Apple (AAPL) likely gaining EU antitrust approval for its App Store fees and rules, which could help it avoid daily fines. Meanwhile, Rocket Lab (RKLB) has reportedly been contacted for future Golden Dome launch contracts, joining SpaceX in competitive bidding.
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.