The palace drama between the White House and the Federal Reserve continues. White House National Economic Council Director Hassett publicly stated that he suggests Federal Reserve Governor Cook should take a leave of absence during the lawsuit, and claimed that the President 'absolutely has the right' to dismiss her for just cause.

This is no longer a hint; it’s practically written on their faces as 'you should leave.' Just after Trump mentioned he wants to fire Cook, the next candidate he is considering for the Federal Reserve Chair suddenly comes out to 'suggest' that Cook take a leave. The coordination is truly seamless.

The independence of the Federal Reserve is being openly challenged, which is more stimulating for the market than any macroeconomic data. Now, in trading, one not only has to look at candlestick charts but also follow the White House soap opera daily; geopolitical risk now includes domestic political drama.