Top Overnight News Trump said on Tuesday that Treasury Secretary Scott Bessent could be a candidate to replace Federal Reserve Chairman Jerome Powell, but suggested that might not happen. When asked if Powell’s renovation cost overrun were a fire able offense, Trump said “I think it sort of is.” RTRS President Donald Trump said he was likely to impose tariffs on pharmaceuticals as soon as the end of the month and that levies on semiconductors could come soon as well, suggesting that those import taxes could hit alongside broad “reciprocal” rates set for implementation on Aug. 1. BBG Kevin Hassett, one of President Donald Trump’s longest-serving economic aides, is the early frontrunner to replace Jerome Powell as Federal Reserve chief next year, followed by Kevin Warsh. BBG Trump is expected to sign an executive order in the coming days designed to help open up 401(k)s to private-market investments, according to WSJ. Senator Cassidy said President Trump is to sign Fentanyl Act into law on Wednesday. Defense Secretary Hegseth ordered the release of 2000 National Guard troops from the federal protection mission in LA. Japan’s super-long bonds rose, reversing course after a rout earlier in the week over concern that this weekend’s election will result in higher government spending. BBG Rio Tinto’s macro commentary on the Chinese economy – “industrial activity and net exports grew strongly during the quarter on the back of China’s highly competitive manufacturing sector. Trade diversification continued as the decline in exports to the US was more than offset by shipments to other regions. Retail sales growth was supported by ongoing stimulus measures while the government remains committed to infrastructure investment. However, headwinds such as trade tensions and a soft property market continue to pose challenges." Indonesia’s central bank cut its policy rate by 25bp to 5.25% (analysts were split on the outcome of this meeting, with some anticipating a cut while others felt rates would stay unchanged). WSJ ASML (-7.3% in pre) walked back growth forecasts for next year due to the trade uncertainty, even as its second-quarter orders beat estimates. The stock slumped. BBG Inflation unexpectedly rose in the U.K., likely keeping policymakers at the BOE cautious despite a limping economy. Headline, core, and services CPI all were higher than anticipated. WSJ Taiwan, Switzerland and India, none of which received letters letters from Trump last week, are all potentially closing in on deals that could be announced in the coming weeks. Politico Fed's Logan (2026 voter) said the base case is that monetary policy needs to hold tight for a while longer to bring inflation down and she wants to see low inflation continue longer to be convinced, while she added that June CPI data suggests PCE inflation, which the Fed targets at 2%, will rise. Logan also commented that softer inflation and a weakening labor market could call for lower rates fairly soon and under the base case, the Fed can sustain maximum employment even with modestly restrictive policy.