Market Update: Fed Visit, Intel Cuts, Meme Stocks, and TikTok Deadline Looming

President Trump visited the Federal Reserve, sparking a discussion with Chairman Jerome Powell about the construction project. The S&P 500 and Nasdaq Composite have recorded new all-time highs this week. Intel CEO Lip-Bu Tan announced spending cuts, particularly in the foundry division, to ensure investments "make economic sense." The White House is warning that TikTok may shut down in the US if it cannot find American owners by September 17.

President Trump's recent visit to the Federal Reserve sparked a contentious discussion with Chairman Jerome Powell over the final cost of the central bank's renovations. The visit, which marked the first time a president has set foot at the Fed since 2006, highlighted the ongoing tension between the White House and the central bank.

During the visit, Trump and Powell, along with Sen. Tim Scott, stopped to address news cameras. Trump, waving a document, claimed the costs had now reached $3.1 billion, but Powell disputed this figure, stating that the additional costs cited were for a separate building whose construction was completed five years ago. Powell noted that the Fed has attributed the cost overruns to mitigations for lead and asbestos, as well as inflation, which has raised the cost of building projects nationwide [1].

The visit comes amid a backdrop of political pressure on the Fed to lower interest rates more quickly. Trump has been relentlessly attacking Powell, describing him as a "numbskull" and as "too late" to cut interest rates. Despite Trump's pressure, the Fed has held interest rates steady this year, with the federal funds rate remaining in a target range of 4.25% to 4.5% [2]. The latest data showed consumer prices rising 2.7% from a year ago, which has led the Fed to hold off on rate cuts.

The S&P 500 and Nasdaq Composite have recorded new all-time highs this week, reflecting a resilient stock market despite the ongoing geopolitical tensions and inflation concerns. Meanwhile, Intel CEO Lip-Bu Tan announced spending cuts, particularly in the foundry division, to ensure investments "make economic sense." The White House is also warning that TikTok may shut down in the US if it cannot find American owners by September 17.

In summary, Trump's visit to the Federal Reserve underscored the political pressures on the central bank to lower interest rates. Despite Trump's criticism, the Fed has maintained its independence, holding interest rates steady. The ongoing geopolitical tensions and inflation concerns continue to shape the financial landscape, with the stock market showing resilience despite these challenges.

References:
[1] https://www.npr.org/2025/07/24/nx-s1-5478922/trump-federal-reserve-renovation-jerome-powell
[2] https://www.cnbc.com/2025/07/25/fed-likely-to-hold-interest-rates-steady-despite-trumps-pressure.html