Good morning. In this edition:

• 🏦 You're fired?
• 💍 Taylor Swift and Travis Kelce get engaged
• 🍺 The secret to thick, stable beer foams

…and much more.

Ready, Set, Go: Today’s news should be a ~3.51-minute read (934 words).

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“What you resist, persists.”

–Carl Jung (1875-1961)

President Trump fired Fed governor Lisa Cook on Monday evening over recent allegations of mortgage fraud, according to a letter shared by the White House on X.

But Cook, who was appointed by former President Biden in 2022, responded by saying Trump lacks the authority to fire her, and that she’ll continue in her job while suing to block the move.

• In a statement published Tuesday, the Federal Reserve said it plans to abide by any court decision on whether Trump can fire Cook.

Quick background: The move from Trump—who has consistently criticized the Fed in recent months for not lowering interest rates—came a week after Bill Pulte, a presidential appointee who’s the top federal housing regulator, accused Cook of mortgage fraud.

• Pulte says Cook illegally claimed two different primary residences within a 14-day period when applying for mortgages on two properties in 2021 (one in Ann Arbor, the other in Atlanta).
• He also said this information was submitted earlier this month to the Justice Department in a criminal referral.

Is Cook’s firing legal? We’re about to find out

Current federal law allows the President to fire a Fed governor “for cause,” which typically means they participated in some kind of wrongdoing or neglected their duties. In his letter, Trump said there’s “sufficient reason” to believe Cook committed mortgage fraud, which justifies her firing.

But critics of Trump’s move argue that establishing a for-cause removal typically requires some type of procedure that would allow Cook to answer the charges against her and present evidence, which had yet to happen when Trump fired her.

• Analysts widely expect that Trump’s attempt to fire Cook will kick off a lengthy legal battle that has a good chance of ending up in the Supreme Court.
• If Trump succeeds in her removal, it would mark the first termination of a governor in the bank’s 111-year history, and could erode the Fed’s political independence, which has been a hallmark of America’s central bank since the 1950s.

Big picture: Trump’s firing of Cook comes as the Fed has held interest rates steady at 4.25%–4.5% for five straight meetings so far this year, largely due to concerns that tariffs could raise inflation (currently above the Fed’s 2% target). But in a speech last week, Fed Chair Jerome Powell signaled the central bank could start lowering interest rates as soon as its next meeting in September due to labor market concerns—and with the resignation of a Biden-appointed governor earlier this month, Trump could fill a majority of board seats before Federal Reserve Chair Jerome Powell’s term ends next year.

📊 Flash poll: How do you feel about Trump’s move to fire Fed governor Lisa Cook over allegations of mortgage fraud?

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BUSINESS & MARKETS

• 🍽️ Cracker Barrel scraps new redesign following backlash from customers, investors, and President Trump.
• 📱 Apple announces launch event on Sept. 9 that’s widely expected to feature the new iPhone 17.
• 🤝 Anthropic reaches preliminary settlement in a landmark class-action lawsuit filed by a group of US authors that accuses the AI startup of copyright infringement.

SPORTS, MEDIA & ENTERTAINMENT

in partnership with Worthy

• 💒 It’s a “Love Story”: Taylor Swift and Travis Kelce announced plans to tie the knot after two years of dating. | The NFL cut deadline occurred yesterday afternoon, as teams officially trim rosters down to 53 ahead of the season opener next week.
• 📺 Fox-owned TV stations—including Fox and Fox News—may be pulled from YouTube TV in the coming days amid a carriage dispute.
• ⚾️ Seattle Mariners' Cal Raleigh hits MLB-leading 50th home run, joining Mickey Mantle as the only switch-hitters to hit 50 homers in a season.

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SCIENCE, SPACE & EMERGING TECH

• 🤖 Google rolls out an image upgrade to its Gemini chatbot, with new model allowing more control over editing photos. | ...and also unveils plans to start blocking users from sideloading unverified apps on Android devices starting next year.
• 🚀 SpaceX’s Starship, the largest rocket ever built, launches into space on 10th test flight yesterday evening; this follows two consecutive scrubbed launches in recent days.
• 💼 First-of-its-kind Stanford study shows that employment for 22-to-25-year-old workers in AI-impacted jobs—software development, customer support, etc.—is down 16% since late 2022.

US, WORLD & POLITICS

• 🎓 Over a dozen US college campuses have experienced hoax calls about active shooters in recent days.
• 🌐 Department of Gov’t Efficiency (DOGE) workers allegedly uploaded a massive Social Security database to an unsecured cloud in June, risking private information of hundreds of millions of Americans, according to current chief data officer of Social Security Administration.
• 🏛️ President Trump signs executive order seeking to prosecute people who burn the American flag; SCOTUS in 1989 ruled flag burning is protected under free speech laws, though Trump’s order doesn’t outright criminalize the practice. | Federal judge dismisses Trump admin lawsuit against every federal judge in Maryland over recent immigration order. | Trump admin will seek the death penalty as punishment for homicides in Washington, DC, the President said in a Cabinet meeting.

☝️ Spain's "Tomatina" street fight turns 80 today. The annual giant food fight attracts tens of thousands of people from around the world, who paint the streets of Bunol red with tomato paste that runs ankle deep. There are no teams, points, or rules to the fruit-flinging event—just puré(e) tomato chaos.

🤔 Did you know? Butterflies taste with their feet, using special sensors on their tarsi—the tips of their legs—to detect whether a plant is a suitable place to lay their eggs.

📰 Worth a read: The surprising ways Gen Z is investing differently than older generations

🖱️ Clickbait: Scientists unlock the secret to thick, stable beer foams

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