Hey Capitalists,

Here’s everything you need to be following today:

• Republicans and Democrats agree that Cracker Barrel’s rebrand “sucks”

• Powell signals possible rate cuts, markets spike

• Fed governor’s fraud investigation gets even more interesting…

• Trump wins big time in court

• Is a “Alt coin season” on the way?

Today’s markets:

• S&P (+ 1.46%)

• Dow (+ 2%)

• NASDAQ (+ 1.62%)

• VIX (-12.29%)

America unified by hatred for Cracker Barrel’s chic rebrand

The current backlash over Cracker Barrel's new minimalist logo and modernist restaurant redesigns comes as longtime customers react to what they perceive as the abandonment of the chain's traditional "Old Country Store" identity in favor of contemporary inclusivity efforts, and even the left hates it apparently.

• The Democrat Party’s official X account posted criticism of the rebrand, joining conservatives in the backlash, writing, “We think the Cracker Barrel rebrand sucks to.”

• CEO In Denial - CEO Julie Felss Masino reported positive employee and guest feedback, insisting only a “vocal minority” was dissatisfied witht he updates.

• Market Reacts Harshly - Cracker Barrel’s shares plunged 10% Thursday after unveiling a simplified logo.

The company also embraced LGBTQ Policies:

• Cracker Barrel has worked closely with the Human Rights Campaign (HRC) for over a decade to become more LGBT-friendly, led by former employee Steve Smotherman who founded an internal LGBT resource group and later joined HRC's Business Advisory Council.

• Corporate Equality Index drove policy changes: Cracker Barrel's HRC Corporate Equality Index score rose from zero in 2002 to 80 in 2021 as the company added sexual orientation protections, pulled "Duck Dynasty" products after homophobic remarks, and barred anti-LGBT events at their locations.

• High-profile Pride support initiatives: The restaurant chain has openly celebrated Pride with rainbow-colored rocking chairs in 2023, sponsored the Nashville Pride Parade in 2024, marking a dramatic shift from its 1991 policy of firing employees who didn't demonstrate "normal heterosexual values."

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Powell admits Trump was right, signals possible rate cuts

Federal Reserve Chair Jerome Powell gave a cautious indication of possible interest rate cuts at the Jackson Hole conference, citing "sweeping changes" in tax, trade and immigration policies that are shifting the balance of risks between employment and price stability goals.

• Markets rally on dovish remarks: Powell's comments that "the shifting balance of risks may warrant adjusting our policy stance" sent stocks soaring over 600 points and caused Treasury yields to tumble, as markets interpreted this as endorsement for expected September rate cuts.

• Tariff inflation concerns complicate policy decisions: Powell noted that tariffs pose risks for renewed inflation in a potential stagflation scenario, though he suggested a "reasonable base case" is that tariff impacts would be "short lived" and represent a one-time price level shift rather than sustained inflation.

• Fed reaffirms independence and 2% inflation target: Despite President Trump's public demands for aggressive rate cuts, Powell emphasized that "FOMC members will make these decisions based solely on their assessment of the data" and reaffirmed the Fed's commitment to its 2% inflation target following lessons learned from the painful inflation period after 2020.

Fed Gov’s alleged Mortgage allegations are gathering steam

The Justice Department is probing Federal Reserve Governor Lisa Cook for alleged mortgage fraud after a Trump administration official’s criminal referral, as President Trump demands her immediate resignation amid escalating political pressure.

• Letter Demands Swift Action: DOJ attorney Ed Martin urged Fed Chair Jerome Powell to fire Cook immediately, warning of a “cloud” over her, though Powell lacks the authority under the Federal Reserve Act.

• Allegation Centers on Residences: FHFA Director Bill Pulte’s referral accuses Cook of improperly claiming two different properties as her primary residence at the same time four years ago.

• Cook Vows Full Response: In a statement, Cook said she’s gathering facts to address the pre-Fed allegations seriously but has no plans to resign despite public pressure.

• Broader Trump Fed Tensions: The probe aligns with Trump’s ongoing criticism of Powell’s interest rate stance and reports of the president considering Cook’s ouster, limited by Supreme Court guidance.

Trump’s half a billion dollar fine just got dropped

A New York appeals court on Thursday voided a $500 million fraud penalty against President Donald Trump, deeming it an excessive fine that violates the Constitution, in a major win for the Trump Organization.

• Injunctive Relief Upheld: The appeals court praised the trial judge’s “well-crafted” injunctive relief to curb the Trump Organization’s business practices, maintaining oversight without the hefty monetary penalty.

• Eighth Amendment Cited: The court ruled the $500 million fine unconstitutional under the Eighth Amendment, which protects against excessive fines, marking a significant legal precedent.

• Lawsuit Originated by James: New York Attorney General Letitia James filed the civil fraud lawsuit against Trump, his company, and other defendants, targeting alleged business misconduct.

• Awaiting Official Responses: CNBC has sought comments from James, the White House, and the Trump Organization on the First Judicial Department’s ruling, with updates pending.

Coinbase predicts a “Alt Season” by September

Coinbase analysts predict a vibrant altcoin season by September, driven by expected Federal Reserve rate cuts, as Bitcoin’s market dominance dips and investors chase higher returns in a bullish crypto market.

• Bitcoin’s dominance declines: Bitcoin’s market share dropped from 65% in May to 59% in August, signaling an early shift toward altcoins outperforming the leading cryptocurrency over a 90-day period.

• Rate cuts spark liquidity: Anticipated Federal Reserve interest rate cuts in September (83.1% chance) and October (44.4% chance) could release trillions from money market funds, boosting crypto market liquidity.

• Ethereum leads altcoin growth: Ethereum’s surge, fueled by institutional adoption and treasury company accumulation, outpaces other altcoins, which have been limited by low retail investor participation.

• Liquidity metrics improve: Coinbase’s z-score, tracking stablecoin issuance, trading volumes, orderbook depth, and free float, indicates rising cryptocurrency market liquidity after a six-month decline.