Trump's Patience with Iran Fades, Raising Fears of Prolonged Conflict
President Donald Trump expressed growing frustration with Iranian negotiators, signaling that the renewed military conflict in the Middle East could be prolonged. Speaking at a Cabinet meeting on Friday, Trump criticized Iran for a missile attack on US forces in Jordan earlier this week, which ended a brief ceasefire. "I'm losing trust in them because they lie and distort the facts," Trump told reporters at Camp David. He warned, "We will hit them hard," adding that there will come a day when they say they cannot sustain the pressure.
Fed's Walsh Considers Reducing Meeting Frequency
Federal Reserve Chair Kevin Walsh is reportedly exploring the possibility of reducing the frequency of the central bank's regular policy meetings, according to a Friday report. The proposal was raised during this week's Federal Open Market Committee (FOMC) meeting. Currently, Fed policymakers meet eight times a year for two-day sessions to announce monetary policy decisions. This week, the committee voted 9-3 to hold interest rates steady.
Tech Giants Alphabet, Amazon, and Microsoft Add Nearly $1.5 Trillion in Market Cap This Week
Wall Street's divide over winners and losers in the artificial intelligence space has widened after major tech companies reported earnings. The firms confirmed or raised capital expenditure forecasts, indicating that massive investments are still ongoing. This week, the six major tech stocks that reported quarterly results saw nearly $2 trillion in capital flows. The three largest cloud service providers—Amazon.com Inc, Microsoft Corp, and Alphabet Inc—saw their market values surge after reporting strong cloud growth, suggesting investors expect returns on their billions in AI spending are imminent. Microsoft's market cap rose by over $600 billion this week, while Amazon and Alphabet each added more than $400 billion.
Middle East Conflict Drives Oil Prices, Exxon and Chevron Post Q2 Profits of $26.5 Billion
Driven by rising crude and gasoline prices following the Trump administration's conflict with Iran, Exxon Mobil Corp and Chevron Corp reported combined second-quarter profits of $26.5 billion. The two US oil giants posted the massive windfall on Friday, delighting investors but creating a rift with the president, who has accused the industry of price gouging. Chevron's net income for the three months ending June 30 hit $12.2 billion, a fourfold increase year-over-year, marking the Houston-based company's highest quarterly profit ever. Rival Exxon Mobil's second-quarter net income of $14.5 billion doubled from a year ago, its best quarter since the 2022 Russia-Ukraine conflict sparked a surge in oil prices.
US and Japan Coordinated Yen Support Signals New Normal in FX Intervention
Coordination between the US and Japan to support the weakening yen has reached an unprecedented level in decades, with the two nations jointly pushing back against selling pressure in the $9.5 trillion-a-day global forex market. Japan likely intervened with about 8.45 trillion yen on Thursday, and US authorities queried several banks on yen exchange rates. This "rate check" is often seen as a precursor to intervention, marking the second such action by the US this year. The yen rose 3.3% against the dollar during New York trading. It strengthened further on Friday after reports that US authorities notified banks of potential support for the yen. By 2:38 p.m. in New York, the yen was up 0.9% at 158.84. The New York Fed reportedly asked at least two major US banks for yen-euro quotes on Friday.
Dallas Fed President Logan Dissents, Warns Inaction Threatens 2% Inflation Target
Dallas Federal Reserve Bank President Lorie Logan dissented from the Fed's decision to hold rates steady, arguing that inflation will not fall back to the central bank's 2% target without action. "Without policy restraint, inflation could remain above target until an unexpected shock occurs," Logan said in a statement on Friday. "Taking modest action in the near term reduces the risk of needing more drastic moves later." Fed officials voted 9-3 to keep rates unchanged on Wednesday, the fifth consecutive hold. However, concerns about inflation persist as it remains above the 2% target. Joining Logan in dissent were Minneapolis Fed President Neel Kashkari and Cleveland Fed President Beth Hammack.
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