I’ve also added a section toward the bottom of the newsletter showcasing some of the best long reads we’ve published lately. Why? Because there won’t be any newsletters next week. It’s our annual summer break so feel free to read some of those, or spend the week actively trying not to take in any more information (that’s what I’m going to attempt). I’ll be back in your inbox on September 8. Hope you have a great end to your summer, and as always, thanks for reading.
President Trump’s effort to remove Federal Reserve Governor Lisa Cook has become a high-profile test of Fed independence. But the bigger story is that he may have several opportunities to increase his influence over the central bank even if Cook stays put.
What is the fight over? The White House says Cook should be removed because of alleged inaccuracies on mortgage documents. Cook denies any wrongdoing, and her lawyer said this week there is no legal basis for her dismissal. Trump's critics say the effort is really about monetary policy. Replacing Cook would give the president an opportunity to install a governor more aligned with his push for lower interest rates.
Trump has other openings Cook is not Trump’s only potential opportunity. Former Chair Jerome Powell remains on the board until 2028, Vice Chair Philip Jefferson must soon decide whether to remain after his leadership term expires, and the Atlanta Fed presidency remains vacant. Each could create a new opening to shape the Fed's leadership.
Border wall: U.S. District Judge Orlando Garcia in San Antonio will hold an emergency hearing for a TRO against the Department of Homeland Security and its plans to clear land in Big Bend National Park in order to build a border wall. The department paused construction earlier this month after bipartisan criticism over the wall’s potential impact on the park's landscape and wildlife.
Trump: U.S. District Judge Alvin Hellerstein in Manhattan is expected to issue a decision today on President Trump’s bid to move his already-decided hush money case to federal court, a move that could pave the way to getting the case dismissed on presidential immunity grounds.
Court calendars are subject to last-minute docket changes.
"This agreement could simply codify much of the 'safety theater' that Meta has been doing in recent years. Instagram will be used a little less, but it will not be any safer."
—Former Meta safety engineer Arturo Bejar, whose testimony helped build a child safety case against Meta, speaking about the company’s settlement with a coalition of U.S. states. Bejar said the proposed settlement does not meaningfully address the problems he was asked to testify about. Read more here.
