Fed vs. inflation

HD stops Trump's historic attempt to fire Cook

The US Supreme Court stops President Donald Trump from dismissing Fed member Lisa Cook. This is reported by several media outlets.

By a vote of 5-4, the court ruled on Monday that members of the Federal Reserve may only be dismissed if there is a "factual basis". The court also noted that Congress has limited the president's powers in the matter for "good reasons" to protect the central bank's independence.

The decision comes after the Supreme Court ruled earlier this year that Trump lacked the authority to use emergency legislation to impose extensive tariffs.

Analysis: The AI ​​boom could trigger the next inflation shock

Micron's record profits and high margins dispel concerns that the AI ​​rally is over - however, it is not necessarily good news for the rest of us, writes Bloomberg's Chris Bryant in an analysis. The shortage of memory chips is driving up prices so much that tech giants like Apple and Microsoft are being forced to raise prices on consumer electronics. This risks fueling inflation and forcing the Federal Reserve to raise the US interest rate. “Just like higher oil prices, skyrocketing memory chip prices will affect us all,” he writes.

SvD’s Johan Carlström makes a similar assessment, warning that “massive AI investments risk creating a new wave of inflation, which could be worse than previous price shocks,” he writes.

One factor that could speak in the opposite direction is whether AI has the same effect as previous technological leaps and increases productivity. This in turn tends to push down inflation – an argument that, among others, Donald Trump’s new central bank governor Kevin Warsh has highlighted.