CNBC Daily Open: Building renovations might be another front in Trump's attacks on Powell

• U.S. President Donald Trump announces 35% tariffs on Canada.
• More all-time highs for U.S. stocks.
• The White House accuses Powell of mismanagement.
• Doubtful about the valuation of Starbucks' China business.
• 'New bull case' for the market.

Homo economicus, or the “economic man,” is an idea that depicts humans as rational beings. This assumption has been used to construct models of the economy and, more broadly, society.

The great flaw in that theory is the supposition of logic in humans. We know, on an everyday basis, how flimsy that notion is. We need to keep our blood cholesterol in check, but the crunch of that fried chicken is irresistible.

On Thursday, the U.S. Office of Management and Budget Director Russell Vought accused Federal Reserve Chair Jerome Powell of shooting over the budget to renovate the central bank's headquarters by roughly $700 million.

In the same breath, he also questioned why there weren't any “rooftop terrace gardens, VIP private dining rooms and elevators, water features, premium marble, and much more” constructed, as was originally planned.

To be fair, if all the allegations are true — that the promised luxury features factored into the budgethad been omitted while costs have busted expectations — that wouldconstitute mismanagement At this point, however, either the budget or the fountain's got to give.

The accusation, more fundamentally, raises the question of whether U.S. President Donald Trump — who has engaged in multiple tirades against Powell will use this incident to boot the Fed chair.

The idea of “homo economicus” was widely criticized in the late 20th century. Through psychological experiments, economists have proven no human is fully rational. But, really, did they have to go to such lengths?

What you need to know today

Trump announces 35% tariffs on Canada.In his letter to Canada, Trump highlighted how the country “retaliated with its own Tariffs” in March after the White House imposed fentanyl-related levies on it, as well as its other “Tariff, and Non-Tariff, Policies and Trade Barriers.”

More all-time highs for U.S. stocks. Both the S&P 500 and Nasdaq Composite rose Thursday to notch new closing records. The Stoxx Europe 600 gained 0.54%. Mining firms were boosted by Trump's 50% tariffs on copper, due to kick in Aug 1.

The White House accuses Powell of mismanagement. Trump's budget chief said that Powell had misled Congress about the renovation of the central bank's headquarters. It raises the question of whether Trump would use the incident to remove Powell.

Doubtful about the valuation of Starbucks' China business.Analysts have expressed hesitation over the $10 billion figure attached to the coffee chain's subsidiary, saying it does not consider the stiff competition in China's market.

[PRO] 'New bull case' for the market. The chief investment officer at Morgan Stanley Wealth Management wrote to clients that several factors in the economy are helping investors shrug off tariff-related fears.

And finally...

The price of FOMO — Indias options market faces a reality check

A week ago, India's markets regulator sent a strong signal by barring global trading firm Jane Street from participating in the local equities market.

But as the noise settles and the legal back-and-forth begins, the real story may lie elsewhere. This case offers a window into the structure and stress points of India's options market and what happens when regulation, technology and retail enthusiasm collide.