US: Wall St subdued at open on mixed retail earnings ahead of Fed meet
The Dow Jones Industrial Average fell 0.4 points, or flat, at the open to 44,922.7.
The S&P 500 fell 4.7 points, or 0.07 per cent, at the open to 6,406.62, while the Nasdaq Composite dropped 45.3 points, or 0.21 per cent, to 21,269.667 at the opening bell. REUTERS
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Straits Times
18 minutes ago
- Straits Times
Trump calls on Fed Governor Lisa Cook to resign over mortgage allegations
Chairman of the US Federal Reserve Jerome Powell (left) speaking with Lisa Cook, member of its Board of Governors, on June 25. WASHINGTON - US President Donald Trump on Aug 20 called on Federal Reserve Governor Lisa Cook to resign on the basis of allegations made by one of his political allies about mortgages she holds in Michigan and Georgia, intensifying his effort to gain influence over the US central bank. Ms Cook said she had 'no intention of being bullied to step down' from her position at the central bank after US Federal Housing Finance Agency Director William Pulte raised the allegations in a tweet. 'I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts,' she said in a statement. Mr Trump has also told aides he is considering trying to fire Ms Cook, the first Black woman to serve on the Fed board, the Wall Street Journal reported on Aug 20, citing a senior White House official and another person familiar with the matter. Reuters could not immediately verify the report. The White House declined to comment on the WSJ report. Mr Pulte alleged in a post on X earlier in the day that Ms Cook had designated a condominium in Atlanta as her primary residence after taking a loan on her home in Michigan, which she also declared as a primary residence. He told CNBC he is also probing property Ms Cook has in Massachusetts. Loans for a primary residence can carry easier terms than those for second homes or investment properties. Mr Pulte said the loans in question date to mid-2021, before Ms Cook was appointed to the Fed by former President Joe Biden and confirmed by the Senate the following year. Ms Cook, a native of Georgia, was an economics professor at Michigan State University at the time the mortgages were taken out. Mr Pulte asked US Attorney General Pam Bondi to investigate Ms Cook, and Mr Trump quickly amplified the allegation. The Justice Department is taking the matter very seriously, a department official told Reuters. Top stories Swipe. Select. Stay informed. World Israel says it has taken first steps of military operation in Gaza City Singapore 3 Sengkang Green Primary pupils suspended for bullying classmate, with 1 of them caned: MOE Singapore 18 persons nabbed and 82 vapes seized in HSA ops in Raffles Place and Haji Lane Business Chinese brands like Pop Mart, BYD, Joocyee expanding into S'pore as gateway to Asean market Life Why should we bear the burden of budget meals and app discounts, some hawkers ask Singapore Religion growing in importance for Singaporeans: IPS study Asia 'Disastrous, useless': New Zealand to overhaul high school qualification to lift falling standards Opinion Malaysia: The cost of public doubt over high-profile criminal cases Democrats on the US House of Representatives Committee on Financial Services blasted Mr Trump's attack on Ms Cook and vowed to fight it. 'Donald Trump is making up blatant lies in an effort to oust the first Black woman to serve on the Federal Reserve Board, so he can replace her with another unqualified loyalist who will do his bidding,' they said in a post on X. 'This is another attack on the Fed's independence. We can't let this happen.' Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, echoed those concerns, saying in a statement: 'The president and his administration should not weaponise the federal government to illegally fire independent Fed Board members.' Ms Cook's federally filed financial disclosure documents show three mortgages taken out in 2021, including a 15-year 2.5 per cent loan on an investment property and two loans for personal residences, including a 30-year 3.25 per cent mortgage and a 15-year 2.875 per cent mortgage. The weekly average rate for 30-year loans during 2021 ranged between 2.9 per cent and 3.3 per cent, Mortgage Bankers Association data shows. Ms Cook started at the Fed in 2022 and was reappointed to a 14-year term in 2023. 'Cook must resign, now!!!' Mr Trump wrote in a post on his social media platform, his latest remarks aimed at reshaping the US central bank, a body designed to set benchmark interest rates independent of White House influence. The Trump administration has used mortgage fraud investigations to go after a number of other political enemies, including Democratic New York State Attorney General Letitia James, who brought a civil fraud case against Mr Trump for lying about his net worth to obtain his own favourable bank loans as he built his real estate empire. That case resulted in a US$355 million (S$456.4 million) judgment against Mr Trump last year, which the president is appealing. Earlier this summer, Mr Pulte asked the Justice Department to investigate alleged mortgage fraud by Democratic US Senator Adam Schiff, who ran the House of Representatives' 2019 impeachment trial against Mr Trump. Ms James and Mr Schiff have both denied wrongdoing. Fed board composition While the Justice Department will review the mortgage fraud referrals, proving criminal liability will be a challenge, a person familiar with the matter told Reuters. One challenge is that in many instances, even if a person wrongfully claims a home to be a primary residence, the mortgage company is often aware of all the facts and does not believe the home is being used as such. The person, who spoke on condition of anonymity, compared some of the fraud claims to flaws in the civil fraud case that Ms James brought against Mr Trump, noting that the bank never gave him credit for a condominium which he allegedly overvalued. It also is not clear if a person needs to live in the property for it to be counted as a primary residence, the person added. 'Mortgage fraud is really about deceiving the banks to get a better loan.' Ms Cook is among three Biden Fed appointees whose terms extend beyond Mr Trump's time in office, complicating the president's efforts to gain more control by appointing a majority of its seven-member Board of Governors. Two of the Fed's remaining six board members were appointed by Mr Trump - Governor Christopher Waller and Vice-Chair for Supervision Michelle Bowman. Mr Trump has repeatedly criticised Fed Chair Jerome Powell over benchmark interest rates that he wants sharply reduced, calling for his resignation while acknowledging that the Fed's unique status in US governance prevents the president from firing its board members over monetary policy disputes. The president can name a new Fed chief when Mr Powell's term ends in May, but claiming a majority on the board may take more time. Mr Powell could continue serving as a Fed governor until 2028, near the end of Mr Trump's second term.
Business Times
an hour ago
- Business Times
US: Wall Street mostly down as tech still under pressure
[TORONTO] US stocks closed mostly lower on Wednesday as the tech sector remained under pressure while investors kept an eye on retail earnings and weighed the prospect of Federal Reserve interest rate cuts. The broad-based S&P 500 Index slid 0.2 per cent to 6,395.78, while the tech-focused Nasdaq Composite Index declined 0.7 per cent to 21,172.86. The Dow Jones Industrial Average was flat at 44,938.31. The tech pullback comes as markets reached a point where many stocks 'were overbought,' after soaring to record highs in recent weeks, said Tim Urbanowicz of Innovator Capital Management. 'But we still view the long-term trend (as) intact,' he said. Among major tech companies, Nvidia shares lost 0.1 per cent while Advanced Micro Devices pulled back 0.8 per cent. Broadcom fell 1.3 per cent. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Investors also digested earnings from retailers Target, which saw a drop in sales, and Lowe's which beat expectations. Target shares closed more than six per cent down while Lowe's edged up 0.3 per cent. Markets have been assessing the health of retailers as they gauge the effects of President Donald Trump's tariffs on inflation and the broader economy. Meanwhile, minutes of the Fed's most recent policy meeting in July also showed that a majority of officials judged that inflation risks outweighed those of employment for now -- as they voted to keep interest rates unchanged despite two dissents. Looking ahead, investors will be scrutinising Fed Chair Jerome Powell's speech at a central bankers' gathering on Friday for signs on where rates may be headed next. AFP
CNA
2 hours ago
- CNA
Federal Reserve's Cook says "no intention of being bullied to step down"
WASHINGTON: Federal Reserve Governor Lisa Cook said on Wednesday (Aug 20) she had "no intention of being bullied to step down" from her role at the central bank, amid calls from US President Donald Trump to do so, according to a statement a Fox Business reporter shared on X. Earlier, the US leader pushed for the Federal Reserve Governor Lisa Cook to step down, expanding pressure on the central bank after recent criticism of Fed Chair Jerome Powell for not lowering interest rates sooner. "Cook must resign, now!!!" Trump wrote on his Truth Social platform, while sharing a Bloomberg news report on how the Federal Housing Finance Agency's (FHFA) director has called for greater scrutiny of Cook over a pair of mortgages. FHFA director Bill Pulte - a staunch ally of Trump's - had reportedly written a letter to the US Attorney General calling for an investigation of Cook while suggesting that she might have committed a criminal offence. It was not immediately clear if such a probe would take place. The Trump administration has pursued allegations of mortgage fraud against high-profile Democrats who are seen as political adversaries of the president. The US leader's targeting of Cook, who sits on the central bank's rate-setting committee, comes after his repeated broadsides against Powell while the Fed kept the benchmark lending rate unchanged this year. Cook took office as a Fed governor in May 2022 and was reappointed to the board in September 2023. She was sworn in later that same month for a term ending in 2038. Cook has previously served on the Council of Economic Advisers under former President Barack Obama. In recent months, Trump has called Powell a "numbskull" and "moron" as the central bank held rates steady to monitor the effects of US tariffs on inflation. Trump had also previously suggested that an overly costly renovation of the Fed's headquarters could be a reason to oust Powell, before backing off the threat.
