The Federal Reserve Lisa Cook’s Removal
Trump officially removed Lisa Cook from the Fed’s position immediately. Although Cook hasn’t responded yet, she could seek the court and return to that position temporarily until the court makes a final decision on the case, only if she wants to challenge the firing.
→ If she is really removed, then this will leave a spot for the four-person stand on Trump’s side and could potentially shake the central bank’s independence in the near term.
→ gold up because they expect to see more imbalance between them, and the potential for a rate cut is very high, aligning with Trump’s current rate goal.
A possibility of 200% tariffs on China over magnet purchases.
U.S. President Donald Trump stated that China must supply rare earth magnets, or “we have to charge them 200% tariffs or something.” This remark comes as China becomes more sensitive toward the dominance of global supply chains while adding several rare materials and magnets to its export restriction list in response to the last US tariff hike. Therefore, Trump stated that he will likely visit China sometime this year.
→ Some tension between China and the US has built upon this request.
→ If China continues to restrict, then GOLD prices will continue to climb.
South Korea’s shipment
U.S. President Trump raised concerns about political instability in South Korea, fearing it could disrupt business. Despite this, he and South Korean President Lee expressed optimism for a deal on shipbuilding and security cooperation with North Korea, aiming to strengthen the relationship between these two divided countries. Plus, the U.S. will maintain a 15% tariff on South Korean goods, while Trump views South Korea as a vital buyer of U.S. military equipment and energy resources.
Russia-Ukraine
Trump made it clear that “there could be consequences if they (Russia and Ukraine) don’t meet,” although he may (not) be there for Putin and Zelenskyy. The consequences he stated here may refer to imposing the secondary sanctions on them, such as Russian oil, for instance.
However, he also noted that Europe will give significant security guarantees, which could grant some protection for Ukraine and end this war peacefully.
