Trump Wants Accountability. The Fed Wants Autonomy.

As Trump eyes steeper duties on EU goods, investors brace for ripples in everything from cheese to stocks.

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Trump Wants Accountability. The Fed Wants Autonomy.

As Trump eyes steeper duties on EU goods, investors brace for ripples in everything from cheese to stocks. July 21, 2025
Morning Bullets is the fastest way to catch up on the market and political news that matter most to your money. Quick takes, sharp insight, and curated opportunities—served fresh every weekday morning.
A bustling European market stall overflowing with cheeses, wines, and electronics, overshadowed by a giant American tariff stamp pressing down, with worried traders looking up in alarm
EU exports feeling the heat from potential U.S. tariff hikes.

Good morning, folks. President Trump’s had enough of the Federal Reserve’s games—and he’s not exactly whispering about it. After torching Powell over bloated spending and weak leadership, the message is clear: accountability is coming to the Fed, whether Wall Street likes it or not. The same crowd that cries foul at a president questioning a $2.5 billion remodel had no issue when the Fed inflated away working-class savings. Investors should pay attention—when Trump rattles the ivory towers, markets start shifting. And here are your Morning Bullets.

– Truly yours, Fred Frost


📉 Yesterday's Market Recap

Friday closed on a sour note as tariff threats from Trump erased early gains, pulling the Dow down 0.32% while the S&P and Nasdaq barely clung to flat. With consumer sentiment ticking up but housing data signaling stress, markets are walking a tightrope amid policy uncertainty.


  • Dow Drops on Tariff Fears: Trump's push for 15-30% tariffs on EU goods wiped out record highs, sending the Dow down 142 points. → Reuters

  • Earnings Beat Expectations: 86% of reporting S&P companies surpassed forecasts, with strong shows from 3M and American Express. → Barrons

  • Consumer Sentiment Rises: University of Michigan index hit 61.8, the highest since February, as inflation expectations cooled. → CNBC

  • Crypto Moves Big: A large Bitcoin holder transferred 40,000 BTC worth $4.75 billion amid stablecoin regulation news. → USA Today


📈 Daily Performance Snapshot

Index/Asset Closing Value Change
S&P 500 6,296.79 -0.01%
Nasdaq 20,895.66 +0.05%
Dow Jones 44,342.19 -0.32%
Gold $3360.50 +0.07%
Crude Oil $67.54 +0.3%
Bitcoin $118,437 +0.28%
10-yr Treasury Yield 4.432% -0.69%

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🔭 What to Watch Today

With earnings season heating up and global trade talks on the brink, today's developments could sway everything from tech stocks to Treasury yields—keep an eye on how free-market dynamics push back against policy overreach.

  • Tech Earnings Kickoff: Tesla, Alphabet, and others report this week, potentially signaling sector strength amid tariff pressures. → Investopedia
  • Housing Data Release: Existing and new home sales figures due Wednesday and Thursday, amid warnings of a market slump. → MarketWatch
  • Fed Speeches: Powell and Bowman speak Tuesday, under Trump's rate-cut demands. → Fortune
  • EU Trade Negotiations: Lutnick eyes a deal before August 1 tariff deadline. → Stocktwits

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    💡 Opportunity Watch

    In a world of tariff turbulence, look for resilient sectors like domestic rare earths and fintech that could weather the storm better than import-heavy plays. Remember, true opportunities arise when government barriers force innovation at home.

    • MP Materials (MP): Surging exports from China haven't dimmed U.S. producers' shine, with Pentagon backing signaling long-term domestic supply chain wins. → Stocktwits
    • Block (SQ): Joining the S&P 500 could boost visibility for this fintech amid market volatility. → CNBC
    • Lens Technology: Poised to benefit from Apple's foldable push, diversifying beyond tariff-hit exports. → IT Bear

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    🔥 The Big Bullet

    What happened: Over the weekend, pressure ramped up on the Federal Reserve as President Trump unleashed fresh attacks on Chair Jerome Powell—calling him a "numbskull" and pointing to a $2½ billion Fed renovation as grounds for removal. Treasury Secretary Bessent reportedly privately urged Trump not to fire Powell, citing the risk of wreaking havoc on markets. Betting markets are now speculating on Powell’s successor, underscoring how precariously close the central bank sits to political crosshairs -Business Insider, Guardian, WSJ.


    Why it matters: This is more than a political spat—it’s an assault on the bedrock of market stability: central-bank independence. A politicized Fed risks losing credibility, spiking inflation expectations, rattling bond and dollar investors, and forcing the Fed to dance to political whims. Markets may shrug now—but institutional trust doesn’t rebound easily.

    What’s next: Investors should brace for volatility ahead of Powell’s Senate testimony and fresh Fed commentary. The odds of a rate cut may rise if a Trump‑aligned successor takes shape by September. Keep an eye on 10‑year Treasuries and the dollar—if they start sliding, that’s the market signalling fear of political meddling.


    🧭 Policy & Market Ripples

    • Housing Red Flare: Moody's Zandi warns of slumping sales and prices as high rates persist. → Fortune
    • Amazon Price Hikes: Quiet increases on essentials tied to tariffs, contrasting Walmart's cuts. → Stocktwits
    • Retail Sales Rebound: June up 0.6%, but inflation-adjusted gains modest amid tariff worries. → CNN
    • California Rail Funds Cut: Trump axes $4B for overbudget project, highlighting fiscal waste. → Fox Business
    • EU Exporters Anxious: Tariff threats rattle cheese and whiskey makers, risking price spikes. → CNBC

    Don’t let your mouth write no check that your tail can’t cash.
    – Bo Diddley
    That's the wrap for today—stay vigilant, question the spin, and let data guide your moves.

    Stay sharp,
    Fredrick Frost
    Editor, MorningBullets

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