Trump has crossed a bright line:
President Donald Trump on Monday said he has fired Federal Reserve Governor Lisa Cook, according to a letter addressed to her posted on his social media — the first such instance in the central bank’s 111-year history.
The move itself is unprecedented represents a significant escalation of the president’s battle against the Fed, which he has blamed for taking too long to lower interest rates.
Cook has recently come under fire by Trump and members of his administration for allegedly committing mortgage fraud. The Justice Department has said it plans to investigate those allegations first raised by Federal Housing Finance Director Bill Pulte.
The Fed did not immediately respond to CNN’s inquiry.
It’s unclear whether Trump has the legal authority to fire Cook over these allegations. The law specifies that a president may only remove members of the Fed’s board “for cause” – though what merits a for-cause firing has not been explicity defined.
This situation was discussed on August 20 and August 21.
It will be most interesting to see what the Treasury market makes of this tomorrow morning!
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 6.83 % | 7.30 % | 36,396 | 13.10 | 1 | 0.0000 % | 2,413.4 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1012 % | 4,627.8 |
| Floater | 6.57 % | 6.91 % | 40,448 | 12.59 | 3 | 0.1012 % | 2,667.0 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1413 % | 3,649.0 |
| SplitShare | 4.80 % | 4.26 % | 50,390 | 2.37 | 7 | -0.1413 % | 4,357.7 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1413 % | 3,400.1 |
| Perpetual-Premium | 5.81 % | 3.99 % | 70,232 | 0.08 | 2 | -0.0397 % | 3,069.7 |
| Perpetual-Discount | 5.57 % | 5.69 % | 43,141 | 14.35 | 30 | 0.2647 % | 3,357.4 |
| FixedReset Disc | 5.63 % | 6.21 % | 114,664 | 13.28 | 37 | 0.4055 % | 3,013.4 |
| Insurance Straight | 5.42 % | 5.53 % | 55,912 | 14.47 | 18 | -0.1041 % | 3,330.2 |
| FloatingReset | 5.26 % | 5.34 % | 39,343 | 14.85 | 1 | -0.0804 % | 3,747.6 |
| FixedReset Prem | 5.90 % | 5.14 % | 117,166 | 2.46 | 17 | -0.2735 % | 2,623.7 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.4055 % | 3,080.3 |
| FixedReset Ins Non | 5.30 % | 5.61 % | 68,820 | 14.29 | 15 | -0.7708 % | 3,024.9 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| GWO.PR.N | FixedReset Ins Non | -14.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 15.46 Evaluated at bid price : 15.46 Bid-YTW : 6.90 % |
| GWO.PR.P | Insurance Straight | -4.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 22.78 Evaluated at bid price : 23.06 Bid-YTW : 5.95 % |
| IFC.PR.A | FixedReset Ins Non | -3.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 21.30 Evaluated at bid price : 21.30 Bid-YTW : 5.64 % |
| BIP.PR.B | FixedReset Prem | -1.65 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-12-31 Maturity Price : 25.00 Evaluated at bid price : 25.10 Bid-YTW : 6.78 % |
| BN.PR.M | Perpetual-Discount | -1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 20.70 Evaluated at bid price : 20.70 Bid-YTW : 5.84 % |
| PWF.PR.T | FixedReset Disc | 1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 22.92 Evaluated at bid price : 24.00 Bid-YTW : 5.63 % |
| PWF.PR.L | Perpetual-Discount | 1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 22.40 Evaluated at bid price : 22.66 Bid-YTW : 5.68 % |
| GWO.PR.Y | Insurance Straight | 1.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 21.01 Evaluated at bid price : 21.01 Bid-YTW : 5.45 % |
| ENB.PR.H | FixedReset Disc | 1.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 21.49 Evaluated at bid price : 21.86 Bid-YTW : 6.08 % |
| BN.PF.G | FixedReset Disc | 1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 22.17 Evaluated at bid price : 22.80 Bid-YTW : 6.42 % |
| MFC.PR.N | FixedReset Ins Non | 2.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 22.52 Evaluated at bid price : 23.40 Bid-YTW : 5.57 % |
| CU.PR.G | Perpetual-Discount | 3.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 20.66 Evaluated at bid price : 20.66 Bid-YTW : 5.48 % |
| CU.PR.J | Perpetual-Discount | 5.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 21.00 Evaluated at bid price : 21.00 Bid-YTW : 5.69 % |
| BIP.PR.F | FixedReset Disc | 9.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 23.41 Evaluated at bid price : 25.25 Bid-YTW : 5.98 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| POW.PR.B | Perpetual-Discount | 129,000 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 23.31 Evaluated at bid price : 23.59 Bid-YTW : 5.74 % |
| MFC.PR.N | FixedReset Ins Non | 79,900 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 22.52 Evaluated at bid price : 23.40 Bid-YTW : 5.57 % |
| BMO.PR.Y | FixedReset Disc | 69,900 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 23.91 Evaluated at bid price : 24.99 Bid-YTW : 5.68 % |
| TD.PF.E | FixedReset Disc | 52,200 | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-10-31 Maturity Price : 25.00 Evaluated at bid price : 25.00 Bid-YTW : 4.45 % |
| MFC.PR.F | FixedReset Ins Non | 51,700 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 18.26 Evaluated at bid price : 18.26 Bid-YTW : 5.88 % |
| ENB.PR.A | Perpetual-Discount | 41,100 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-08-25 Maturity Price : 23.93 Evaluated at bid price : 24.17 Bid-YTW : 5.71 % |
| There were 15 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| See TMX DataLinx: ‘Last’ != ‘Close’ and the posts linked therein for an idea of why these quotes are so horrible. | ||
| Issue | Index | Quote Data and Yield Notes |
| GWO.PR.N | FixedReset Ins Non | Quote: 15.46 – 18.25 Spot Rate : 2.7900 Average : 1.5813 YTW SCENARIO |
| GWO.PR.P | Insurance Straight | Quote: 23.06 – 24.44 Spot Rate : 1.3800 Average : 0.8380 YTW SCENARIO |
| BMO.PR.Y | FixedReset Disc | Quote: 24.99 – 25.99 Spot Rate : 1.0000 Average : 0.5301 YTW SCENARIO |
| IFC.PR.A | FixedReset Ins Non | Quote: 21.30 – 22.30 Spot Rate : 1.0000 Average : 0.6505 YTW SCENARIO |
| SLF.PR.D | Insurance Straight | Quote: 22.12 – 22.98 Spot Rate : 0.8600 Average : 0.5148 YTW SCENARIO |
| MFC.PR.F | FixedReset Ins Non | Quote: 18.26 – 19.90 Spot Rate : 1.6400 Average : 1.3581 YTW SCENARIO |
this will be fun. let the games begin