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Stay Informed: A Quick Recap of the Business World in the Past Week
Author: Ashrith Desu
This week’s developments centered on a historic clash over Federal Reserve independence and a major government-backed bet on U.S. chipmaking:
Trump Fires Fed Governor Lisa Cook
President Trump removed Federal Reserve Governor Lisa Cook following accusations that she misrepresented rental properties as primary residences to secure lower mortgage rates. The move marks the first time in history that a sitting president has fired a Fed governor, sparking controversy over the central bank’s independence. Cook has disputed the allegations, but the event has already unsettled markets, with the U.S. dollar falling 0.3% on concerns that the Fed’s autonomy may erode under political pressure.Trump Administration Takes 10% Stake in Intel
The Trump administration announced a roughly $9 billion investment into Intel, acquiring about a 10% stake in the company using unused CHIPS Act grants. The move is designed to shore up Intel’s struggling foundry unit, which has consistently lost money but is viewed as essential to U.S. chipmaking and semiconductor independence. By directly backing Intel, the administration is signaling a more interventionist approach to safeguard domestic technology supply chains and prevent further erosion of U.S. competitiveness in critical hardware sectors.Market Impact Summary
- Federal Reserve: Unprecedented presidential removal raises questions about independence
- U.S. Dollar: Down 0.3% on concerns of government influence over monetary policy
- Semiconductors: Intel receives lifeline via $9B government-backed stake
