Hello, N2K’ers!

This week our world famous News Haiku^TM theme is that the new ChatGPT will be ‘warmer and friendlier.’ Send me a haiku on the subject by Thursday at noon ET right here. Winner gets glory — lots of glory, and a GIF!

Now, let’s talk about the news you Need2Know?

—Matt Davis, Need2Know Chedditor

News You Need2Know

• Embattled Fed Gov. Lisa Cook says she’ll sue

• August consumer confidence dips in US

• A US tariff exemption for small orders ends Friday

• Southwest makes big people buy two seats

• Trump weighs in as Cracker Barrel admits it “could …

What’s the stock market up to, eh?

$SPX ( ▲ 0.03% ) $DJI ( ▲ 0.23% ) $NDX ( ▼ 0.15% )

Companies mentioned in today’s newsletter

$LUV ( ▲ 0.12% )  $CBRL ( ▲ 7.26% )  

Embattled Fed Gov. Lisa Cook says she’ll sue

Federal Reserve Governor Lisa Cook has declared her intent to sue the Trump administration over the president's attempt to fire her from her position at the Fed. Cook's lawyer, Abbe Lowell, said, “President Trump has no authority to remove Federal Reserve Governor Lisa Cook. His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis.”

The controversy erupted after President Trump alleged on Truth Social that Cook engaged in "mortgage fraud," claiming she filed for favorable loan terms by misrepresenting her residences. Cook has denied the allegations, stating that Trump’s actions lack legal foundation. “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said, emphasizing, “I will not resign.”

The dispute poses a challenge to the Federal Reserve’s political independence. As Columbia University law professor Lev Menand explained, “It’s an illegal firing, but the president’s going to argue, ‘The Constitution lets me do it.’” 

The case could redefine legal limits on presidential authority over independent institutions. Cook’s case will likely test whether the courts uphold the Federal Reserve’s autonomy. Tell us how you feel in today’s poll 👇🏻

Song of the day: Eve Adams, ‘Get Your Hopes Up’

Shaping a love for Nancy Sinatra into something beguilingly her own, the track is a “masterclass in bar-room blues” from California folk singer Eve Adams. “It’s a gentle dare to feel something again,” Adams says of the song. “Hope is risky, of course — but so is giving up on love.”

Right?

August consumer confidence dips in US

Consumer confidence in the U.S. has dipped for the eighth consecutive month, according to the latest report by the Conference Board.

The consumer confidence index dropped slightly in August, falling from July’s 98.7 to 97.4. With mounting evidence of a cooling labor market and inflation fears triggered by tariffs, Americans are feeling cautious about the economy.

The report highlighted that Americans’ short-term expectations for their income, business conditions, and job opportunities dropped by 1.2 points to 74.8 — the kind of significant decline that can signal a potential recession ahead. A deterioration in the labor market is also fueling concerns.

Economic uncertainty is being linked to President Trump’s tariffs. The Conference Board noted that mentions of high prices and inflation were frequently tied to trade policy. Economists warn that the tariffs are pushing wholesale prices up, which could lead to higher costs for consumers.

Though fewer people are planning vacations and big-ticket purchases, optimism persists in some areas, with a rise in the number of Americans intending to buy cars. As more job data is released in the coming weeks, the outlook for U.S. consumers may shift.

Today on the ‘gram: Swelce

Post of the day: 45 years old…

Quote of the Day

A US tariff exemption for small orders ends Friday

You can kiss your Temu orders goodbye.

This Friday marks the end of a long-standing U.S. tariff exemption for small international shipments, a move that could send ripples through global trade and small businesses. The “de minimis exemption,” which allowed imports valued at $800 or less to bypass customs duties, has been eliminated as part of former President Donald Trump’s efforts to reduce reliance on foreign goods and tighten trade policies.

While proponents argue the move will deter foreign exploitation of the U.S. market, small businesses are bracing for financial strain. Kristin Trainor, owner of boutique Diesel and Lulu’s in Connecticut, says the change threatens her business, which relies on weekly, small-batch orders from European fashion houses. “The added customs and duty charges will eliminate that affordability,” Trainor explained, noting that a $30 wholesale linen sundress could rise to $43 next month. She admitted, “At this point, I am leaning more and more towards closing the boutique, sadly.”

Ken Huening, founder of CoverSeal, which sells protective covers for cars, echoed these concerns. He warned that building a U.S. supply chain isn’t feasible in the short term. “By the time the infrastructure is established, many companies...will be out of business.”

Should you check your 401(k) today?

👍️ 

Sure.

Southwest makes big people buy two seats

Southwest Airlines is rolling out a new policy that is set to impact plus-size travelers. Starting January 27, Southwest passengers who require an additional seat to fit in the plane will need to purchase one upfront. While the airline still offers refunds for the second seat, these will only be granted if the flight is not fully booked and specific conditions are met.

The policy change has sparked criticism, including from Jason Vaughn, a travel agent and avid Southwest customer known for his platform, “Fat Travel Tested.” Vaughn feels the adjustment will diminish comfort for all passengers. Southwest’s current policy helped create a more comfortable flying experience for plus-size travelers, while also ensuring all passengers have adequate space in their seats. Vaughn lamented what he sees as Southwest losing touch with its loyal customer base. “They have no idea anymore who their customer is. They have no identity left,” he said.

As Southwest continues making changes, including adding assigned seating and charging for extras like legroom, the airline faces growing pressure from investors to boost profits.

Trump weighs in as Cracker Barrel admits it “could’ve done a better job” on rebrand

Cracker Barrel is publicly addressing the concerns of its loyal customer base over its rebrand. “If the last few days have shown us anything, it’s how deeply people care about Cracker Barrel. We’re truly grateful for your heartfelt voices,” the company wrote. “You’ve also shown us that we could have done a better job sharing who we are and who we’ll always be.”

The President weighed in yesterday.

"Cracker Barrel should go back to the old logo, admit a mistake based on customer response (the ultimate Poll), and manage the company better than ever before," Trump wrote in a social media post. "They got a Billion Dollars worth of free publicity if they play their cards right. Very tricky to do, but a great opportunity. Have a major News Conference today. Make Cracker Barrel a WINNER again."

Meanwhile, a majority of N2K readers think the controversy will blow over in a few weeks…or they thought that yesterday.

Poll of the Day: Fed Gov cooked?

Poll of the Day:

Do you think Cracker Barrel should roll back its $700 million rebrand?

🟨🟨🟨⬜️⬜️⬜️ Yes. I want the old white dude back in their logo, it matters. It MATTERS. (316)

 🟩🟩🟩🟩🟩🟩 No. I think the story about the controversy is ginned-up and will blow over in a few weeks. (532)

848 Votes via @beehiiv polls