Trump Criticized FBI Raid, Escalates Standoff with Fed; Modi Set to Head East as Markets Brace for Fed Shift

Trump Criticized FBI Raid, Escalates Standoff with Fed; Modi Set to Head East as Markets Brace for Fed Shift

In a whirlwind day of political drama, monetary policy uncertainty, and strategic diplomacy, soaring headlines continue to shape global economic and political discourse.

Trump Speaks Out as Investigations Heat Up

Former U.S. President Donald Trump is publicly distancing himself from a sweeping FBI raid targeting the Maryland home and Washington office of ex-National Security Advisor John Bolton. Trump claims he was not briefed on the operation, heightening scrutiny around national security protocol and internal communications. Simultaneously, he criticized the Federal Reserve—warning that he would dismiss Chair Lisa Cook unless she resigns amid unconfirmed mortgage fraud allegations, even as Powell signals the possibility of an interest-rate cut in September.

This mounting tension further unfolded as the Texas Senate advanced a divisive redistricting bill that could net Republicans five additional U.S. House seats, a move that openly acknowledges its partisan motives and takes advantage of a 2019 Supreme Court ruling on redistricting.

Adding to the turmoil, a federal judge ordered the closure of the controversial “Alligator Alcatraz” immigration detention facility in Florida, citing environmental damage to the Everglades. Trump also issued an executive order stripping many federal workers of collective bargaining rights—a drastic shift that labor leaders warn may signal broader anti-worker policy actions.

Markets and Money: Fed Signals Stir Investor Sentiment

Economic anxiety rippled through markets ahead of Fed Chair Powell’s anticipated speech at the Jackson Hole Symposium. Reports indicate that U.S. stock futures are modestly higher, with investors closely eyeing potential rate cuts amid signs of inflation moderation and ribbing labor markets.

A separate analysis underscores mounting caution: U.S. two-year Treasury yields are climbing, and the probability of a Fed rate cut in September now stands at about 70%, thanks to persistent hawkish tones from Fed officials.

Modi Embarks on Strategic Asia Tour

Meanwhile, in a move reinforcing India’s global positioning, Prime Minister Narendra Modi is scheduled to visit Japan on August 29, at the invitation of Prime Minister Shigeru Ishiba, before heading to China to attend the Shanghai Cooperation Organisation (SCO) Summit in Tianjin. These engagements underscore India’s growing role in regional diplomacy and its engagement with key East Asian powers.