- Markets sold off worldwide after President Trump announced plans to fire Fed governor Lisa Cook and threatened steep tariffs on China, raising fears about Fed independence and the dollar’s role as a reserve currency. S&P futures were down this morning. However some hopes emerged as investors focused on the Fed’s institutional strength.
There was a global selloff in the markets today and every major index—U.S. futures, Asia, and Europe—was down this morning. Two major factors drove the negativity: President Trump’s announcement last night that he will fire U.S. Federal Reserve governor Lisa Cook, thus calling into question the economic independence of the world’s most important central bank; and Trump remarking that he may impose 200% tariffs on China if Beijing restricts U.S. access to supplies of rare earth minerals that are 90% controlled by China.
