CNBC Business News Update - Market Midday: Stocks Mixed, Fed Governor Cook Vows To Fight Back Against Trump Firing, Frontier Airlines Expands 8/26/25

Episode Date: August 26, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica Eddinger. CNBC. Wall Street is in the green this afternoon. The major averages aren't soaring, but they're at what looks to be their highs for the day. The Dow is up 39 points. Boeing shares leading at higher. Boeing's up 3% this afternoon. The S&P 500 index up 10 points now, and the NASDAQ is up 43 points. Invidia shares helping they're up almost 1.5% this afternoon. closely watching and talking about President Trump saying he's fired Fed governor Lisa Cook. She's accused of mortgage fraud but says she's going to sue to keep her job. She's done nothing wrong and is not going anywhere. The president's been pressuring the Fed to lower interest rates and he gets to appoint loyal replacements for anyone who does leave the board. Some say he's hoping to sway the vote on the committee. More questions and answers about the independence of the Fed, the power of the president. The president saying he fired Cook for, quote, allegedly making false statements on one or more mortgage agreements. Cook responded, quote,

President Trump reported to fire me for a cause when no cause exists under the law and he has no authority to do so. I will not resign. Questions include is Cook actually fired now? Does the president actually have this authority? What will Fed Chair Powell do in responsibly allow her into the building or cut off email or whatever? How and when will the courts weigh in here? How much controls the president have over the Fed? CNBC senior economics reporter Steve Leesman. Here's former Fed Vice Chairman Roger Ferguson on CNBC. First, is she guilty of anything?

We do not know that yet. There are allegations. I don't think you're going to have seen any proof yet that's been made public. And we should all keep that in mind. Secondly, there's a question of the President's power to fire a Federal Reserve governor for cause. And what is the definition of for cause? Most people have thought for cause is for some misbehavior in office. not an alleged misbehavior as a private citizen.

Consumer confidence still in the doldrums. It came in lower for August than last month after revisions. Intel is now 10% owned by the U.S. government in an unprecedented move, possibly toward a sovereign wealth fund. And Commerce Secretary Howard Lutnik told CNBC that the government's eyeing defense contractors next. Oh, there's a monstrous discussion about defense. I mean, Lockheed Martin makes 97% of their revenue from the U.S. government. They are basically an arm of the U.S. government.

Commerce Secretary Howard Lutnik on CNBC. Frontier Airlines is expanding and going after struggling rival spirits customers with 20 new routes. Here's the CEO of Frontier with CNBC's Phil LeBoe. With their future in doubt, you're clearly making a play for those customers. why not just make a play for spirit? Why not go out and say, you know, what, we want to buy you again? I'm not here to talk about M&A. Barry, if spirit collapses, how much of their market share do you pick up?

I think that we would pick up the majority. If you look on a nonstop basis, over half of their customers can fly us with the changes we've made. That's Frontier Airlines CEO Barry Biffle on CNBC. Eli Lilly's weight loss pill has cleared its latest trial, paving the way for FDA approval for or for Glypron. Pills are cheaper to make and perhaps cheaper for patients to buy, but they don't seem to work as well as the medicine in the shots. The workforce product for Lilly is still likely to be the injectable products, Manjaro and Zepp.

Tim, why is that? Because you'd think the pill would be it. Because of once a week shot and you get better efficacy. I think it's time on market with the injectable plus better efficacy is the reason. Bank of America's Tim Anderson on CNBC with. CNBC's Andrew Ross Sorkin. Jessica Eddinger, CNBC.