Good morning. In 2010, a trader in Japan placed an order to sell 1.9 billion shares instead of 1.9 million, causing chaos on the Tokyo Stock Exchange.

One typo, billions lost. Always double-check before you hit “Send.”

-Shaun A, David Rosa, Jonathan Kibbler

MARKETS

How’s your favorite today?

Prices supplied by Google Finance as of 4:00am ET - stock prices as of close. Here is what the prices mean.

NEWS

Trump Hints Rate Cuts Are Coming

The tone between the Fed and the White House just took a sharp turn, from tension to teamwork. After months of jabs, Trump walked out of a meeting with Jerome Powell sounding unusually optimistic. And if his read is right, the Fed might finally be ready to loosen the screws on interest rates.

This doesn’t mean the rate cut is locked in. But with the President talking like it’s already in motion, and Fed officials dodging the usual pushback, markets are perking up. The key question now isn’t if, but when. September? October? Before the election storm hits full swing?

Here’s what you need to know and why it matters.

1. Trump Thinks Powell Is Finally Onboard

After their meeting, Trump told reporters that Powell “very strongly” implied the U.S. economy is doing well,his usual coded way of saying “rate cuts are coming.” While Powell didn’t say it outright, Trump interpreted it as a signal that the Fed may soon pivot toward easing. Traders are taking note.

🇺🇸 PRESIDENT TRUMP CONFIDENT FED WILL CUT INTEREST RATES AFTER MEETING WITH POWELL

President Trump described his meeting with Fed Chairman Jerome Powell as positive and believes he will soon start proposing rate cuts.
— #Tristan John (#@Johncrypto_real)
3:27 PM • Jul 26, 2025

2. Pressure Is Building from Inside the White House

Budget Director Russell Vought and Treasury Secretary Scott Bessent continue to hammer the Fed over its renovation project and balance sheet issues. But this time, the criticism is wrapped in policy strategy. Vought pushed for lower rates to help the housing market, saying this isn’t about pressuring the Fed, it’s about accountability. Either way, the message is loud and clear.

3. From Conflict to Cooperation At Least for Now

Despite years of friction, both sides struck a rare positive tone. The Fed called the visit “an honor” and thanked the President for his encouragement. That alone is market-moving. Why? Because traders know that tone shifts often precede policy shifts. When the Fed starts playing nice with the White House, easing risk climbs.

4. The Fed’s Financial Deficit Is Fueling the Fire

The Fed’s $80 billion operational deficit in 2024 is getting more attention. The problem is that, It’s paying more in interest on reserves than it’s earning from investments. That imbalance is now part of the broader criticism, giving Trump’s team more ammo to push for easier policy. It’s no longer just about inflation, it’s about optics and efficiency.

5. Market Expectations Are Still Cautious

Despite Trump’s optimism, futures pricing shows traders still see no rate cut next week. The next likely window is September, with a slim shot of another cut before year-end. But with Trump publicly stating that Powell will “do the right thing,” even a dovish signal from the Fed could ignite repositioning across USD, gold, bonds, and equities.

Here’s the Takeaway:

This isn’t just political theater, it’s a subtle power play with real market consequences. Trump’s confidence in Powell suggests that the Fed may be closer to pivoting than its current tone implies. Whether or not the cut happens this quarter, the setup is changing.

For us traders, it’s time to stop fighting the Fed…and start watching the White House just as closely.

-Shaun A

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TRADER INSIGHTS

Is the PDT Rule for US Traders Going Away Soon?

Trader’s Rejoice!!! Well maybe. Interesting developments for greater accessibility to market for retail participants could be incoming. Reports from various sources are pointing to the Possibility of the PTD rules that currently affect U.S. Traders and brokerages could be vastly reduced from current levels. Currently the rule states that traders need at least $25000 in capital in order to not be afflicted by this rule. The rule change in consideration currency is that this could be reduced to $2000 by the end of the year. Greatly increasing the opportunity for market participants to trade markets openly(depending on broker rules).

Gif by theoffice on Giphy

Currently many traders with low capital usually turn to other instruments in order to maximize profit potential in US markets. Options are a popular option for traders as they can maximize potential although with increased risk and technicals that many traders may not understand. Futures which are not regulated by the same restraints on stock trading also carry the additional issues such as barriers to entry and being always beholden to news both real and fake. While trading stocks is not risk free.(far from it) US Traders looking to participate in markets are really taking to this news.

Gif by AuroryProject on Giphy

The PDT rule was put in place in 2001 in the aftermath of the dot-com bubble bursting. Regulators were looking to protect inexperienced traders from blowing large sums of money in volatile markets. Although one will argue that dumb traders will find a way to blow their money regardless. This was prior to zero commission trading and increased automation that allows brokers to monitor individual positions in real time.

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While there is no published timeline this will need to get approved by the SEC prior to final implementation. A word of caution though indulge me in my tinfoil hat for a second. If the market is looking for additional liquidity where can they find it easily? I would venture to guess that they want even more dumb money to enter the market. Make sure that you are not one of the traders that the market wants to steal from. All in all this move further create better access to markets and for those traders with smaller pocket books another avenue of opportunity.

-David Rosa

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