THE WALL STREET JOURNAL
1. Trump Signals Warsh or Hassett as Top Contenders for Fed Chair
Donald Trump’s consideration of loyalists Kevin Warsh and Kevin Hassett marks a fundamental shift in U.S. monetary policy — away from technocratic independence and toward direct political coordination with the White House. The underlying logic is to align fiscal stimulus, including extended tax cuts, with artificially low interest rates to sustain economic growth. For markets, this creates a short-term bullish signal driven by access to cheap liquidity, but it introduces substantial long-term risks of reigniting an inflationary spiral. Institutionally, it undermines confidence in the dollar’s role as a global reserve currency, as investors begin pricing in the risk of politically motivated monetary debasement. Geopolitically, a weakened Federal Reserve sets a precedent for other central banks to pursue competitive devaluations, increasing the likelihood of global currency conflicts.
2. SpaceX Prepares for a Potential Initial Public Offering
SpaceX’s preparations for a possible IPO suggest Elon Musk is seeking to lock in the company’s valuation at the height of its technological dominance, ahead of potential tightening in the regulatory environment. A public listing would provide access to cheaper capital for long-term expansion and space-colonization projects, but it would also introduce tension between the company’s mission-driven strategy and shareholder demands for near-term profitability. For the U.S. defense sector, the move signals further privatization of space infrastructure, with the Pentagon becoming increasingly dependent on a publicly traded firm whose shares could be acquired by foreign investors. For markets, SpaceX represents a rare opportunity to gain exposure to a quasi-monopoly, albeit one carrying elevated volatility tied to the founder’s unconventional leadership. Strategically, an IPO would reinforce U.S. leadership in space as the sector becomes a core export industry of the current administration.
3. Delays in AI Spending Deal a Fresh Blow to the Stock-Market Rally
A slowdown in capital spending on artificial-intelligence infrastructure indicates that corporations are confronting a growing gap between investment and returns on AI deployment. The market appears to be shifting from a speculative expansion phase to one of consolidation and cost optimization, raising the risk of valuation corrections not only for chipmakers but also for energy companies that had anticipated surging demand from data centers. The deeper dynamic reflects budget reallocation as firms curb innovation spending amid concerns over a potential recession or escalating trade disputes. For global supply chains — particularly in Taiwan and South Korea — the trend signals a possible decline in export orders. Institutional investors are likely to rotate capital out of overheated technology stocks and into defensive assets and the real economy.
4. Administration Clears Path for Crypto Banks Backed by Circle and Ripple
The administration’s approval of plans to establish cryptocurrency-focused national banks points to a strategic effort to integrate digital assets into the U.S. regulatory framework rather than ceding leadership to offshore jurisdictions. The move poses a direct challenge to traditional banks by lowering barriers to cross-border payments and threatening fee-based revenue models. From a geopolitical perspective, it represents an attempt to preserve dollar dominance through stablecoins at a time when BRICS countries are developing alternative payment systems. The risk lies in potential systemic instability: integrating volatile crypto assets into the federal banking system could necessitate public intervention in the event of a market collapse. For investors, the decision signals the start of a new phase of fintech deregulation, likely to attract speculative capital into the sector.