Headlines around the possibility of Trump firing Powell sent risky assets lower and long end rate higher. However, Trump refuted these headlines saying that he doesn't plan on doing anything. We are not legal experts but it would be difficult for Trump to fire the Fed chair. Fed board members are appointed by the President and approved by the House and the Senate but they cannot be removed at will. So Trump would need to come up with some excuse around fraud of the Fed office refurbishment, which is most likely going to be challenged in court.

JPMorgan CEO Jamie Dimon and Desmond Lachman (American Enterprise Institute think-tank) warn that undermining Fed independence could destabilize global markets. The US dollar and Treasurys are foundational to global finance — any perception of political manipulation could trigger capital flight and higher borrowing costs worldwide. If markets begin to price in a loss of Fed independence, the U.S. could face a structurally higher risk premium — weakening the dollar and raising the cost of capital across the economy. During the 2013 ‘Taper Tantrum,’ emerging markets saw $30B in outflows in a single quarter due to Fed policy uncertainty.

The insanity of the current market is taunting investors and begging them to sell, but they just can’t bring themselves to do it. There is speculative froth everywhere, and the economic framework that has fostered stability for decades is intentionally being challenged. There is nothing wrong with challenging the norms and trying something different; that is how progress is made. We genuinely hope the President’s tariff strategy is the magic bullet to narrow the budget deficit, but we know there is no free lunch. There will be a cost. The financial and economic framework that has existed for decades will be put to the test, and it is naïve to believe there won’t be disruption. The current tariff plans will slow the global economy, and with each passing day, retaliation risk rises. Now the President appears intent on taking over the Federal Reserve, violating the foundational principle of central bank independence.

It is well known that the insatiable appetite for special purpose acquisition company (SPAC) initial public offerings (IPOs) that dominated the US capital markets in 2020 and the better part of 2021 has waned in recent years. However, there are signs that SPAC IPOs may be making a comeback. While not at the levels seen in 2020 or 2021, the first quarter of 2025 saw the pricing of 19 SPAC IPOs, raising a total of $3.1bn. This trend has continued into the second quarter with a total of 58 SPAC IPOs though 15 June 2025.

“SPACs aren’t dead—they’ve matured. In today’s environment, SPACs are more structured, better regulated, and offer a cleaner pipeline for high-growth private companies looking to go public. For the right sponsor, in the right sector, at the right valuation—they are a smart trade again.”