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This column has a hunch that the dollar is still king in global commerce because the American economy is king. This column also has a hunch that the American economy is king because of entrepreneurial capitalism and open markets, not because of the particular unelected government officials who now sit atop the Federal Reserve. Some investors may share these hunches. On Tuesday this column noted the effort by President Donald Trump to fire Federal Reserve Gov. Lisa Cook based on an allegation that in mortgage agreements
she claimed two separate houses as her primary residence. Ms. Cook is resisting removal from the Fed board and deserves the presumption of innocence just like everyone else. To have a chance of keeping her seat she will have to come up with a reasonable explanation on the mortgage questions given the power she holds over lending in the United States. Harvard law professor Jack Goldsmith posted Tuesday night on X: The firing of Lisa Cook “for cause” may be pretextual but is not obviously illegal. The big
question is how the markets react. One hears over and over that concrete threats to Fed independence will tank the markets. Tomorrow we will find out. Now that tomorrow has arrived, investors seem more focused on tech earnings, and especially the earnings at the most magnificent of all of America’s magnificent tech companies, a beautiful example of American entrepreneurial capitalism that has thrived in open markets. The Journal reports: After a flurry of Federal Reserve headlines, traders are shifting their
focus to Nvidia and the artificial-intelligence trade.
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