Federal Reserve Chair Jerome Powell announced a quarter-point interest rate cut, the third this year, lowering rates to 3.5-3.75%. With Powell’s term ending in May, Trump may name his successor as early as next week, though Powell’s governor term extends to 2028. Speculation abounds on whether Powell will stay on due to threats to Fed independence.

Trump’s desire to control the Fed has intensified with criticism of Powell, appointments, and calls for presidential consultation on interest rates. The Justice Department investigating Powell for potential prosecution and his claim of a “pretext” subpoena heighten speculation that Powell and other governors may stay past May due to threats to Fed independence.

Traders predict Powell’s departure, with odds at 70% by August 2026. Trump’s nominee must clear the Senate, but Senator Tillis vows to block any appointments until the DOJ issue is resolved. Powell has refrained from addressing the issue, focusing on his remaining time as chair. Trump’s efforts may backfire, leading to increased Fed independence.

In the midst of Trump’s push to influence the Fed, Powell’s future remains uncertain. While the Fed chair dodges questions on his potential departure, speculation grows on whether he will stay on as a governor post-chairmanship. Trump’s actions may inadvertently lead to a more independent Fed, reducing his control over monetary policy decisions.

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Tech giant Apple announced a new feature called “App Privacy Report” that will display how apps are using user data. This move comes as Apple continues to focus on user privacy and transparency. The feature will be available on the upcoming iOS 15 update.

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The Federal Reserve announced that it will start tapering its monthly bond purchases by $15 billion, as the economy continues to recover from the pandemic. The decision signals the Fed’s confidence in the economy’s strength and its ability to withstand less monetary support.

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Inflation rose 0.3% in August, slightly lower than expected, but still showing persistent price pressures. Core inflation, which excludes volatile food and energy prices, increased by 0.1%. The rise in inflation is being closely watched by policymakers and investors for its impact on the economy.: Powell could stay at Fed even after being removed as chair