White House expands search to replace Fed Chair Powell

Tuesday, August 12, 2025

Is hotter inflation a good thing? It is if you were expecting worse — and investors were. Since April's tariff surprise, investors have been worked up about the eventual impact to inflation, which cropped up as inflation accelerated to its highest rate in six months, rising 2.7% year-over-year. But the modest rise wasn't too bad, more than assuring that investors will be treated to a September rate cut from the Federal Reserve.

With that, investors have been pumping stocks today. The Russell 2000 (+1.94%) broke out of its sorry state, followed by the Dow (+1%). the Nasdaq (+0.93%) and S&P 500 (+0.82%). And their run could continue all day from the looks of it. So much for rich valuations. When interest rate cuts are on the table, higher highs are always possible.

Tuesday Reading:

• Southwest Air makes major change to ‘customers of size’ policy
• TheStreet Pro’s analysts tackle tariffs, crypto in market roundtable
• Gen X crisis looms on 401(k)s, IRAs
• Tesla shares jump as popular analyst revamps target
• White House expands search to replace Fed Chair Powell
• Toyota fans should be ecstatic about latest 2026 Camry development

We'll get more color on the Fed's POV as various central bank leaders offer commentary today. But we know how President Trump feels: He says it's time to cut rates.

But aside from economic data and macro talking points taking the air out of the room, earnings season marches on. Sea (+16%), Circle (+7%), and On Holdings (+4%) all showed out during their premarket reports, even as Celanese (-13%), Pony AI (-8%) and Cardinal Health (-7%) slumped intraday. We'll also get some more reports after the bell. Reports from CoreWeave, Cava and H&R Block are bound to catch eyes after the close.

-- Noah Weidner, markets reporter

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White House expands search to replace Fed Chair Powell

New candidates include current and former Federal Reserve officials.

[READ ARTICLE]

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