Big Take Powell Makes His Case to The American People
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Jan 12, 2026 In this engaging discussion, Amara Omokwe, a Bloomberg News reporter covering the Federal Reserve, and Enda Curran, also from Bloomberg and an expert on Fed dynamics, dive into the recent DOJ subpoenas threatening the Fed's independence. They unpack Jerome Powell's unusual response and the potential political fallout. The conversation highlights the financial implications of a costly Fed headquarters renovation, the broader political pressures shaping Fed policy, and how these developments could influence markets and public trust.
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Subpoenas as Political Escalation
- The DOJ subpoenas are framed as a political escalation threatening Fed independence.
- Powell argued the building probe is a pretext to punish the Fed for not following the White House's rate preferences.
Markets' Tentative Reaction
- Markets initially sold off on the news as an 'America trade' reaction, but they often shrug off Fed-attacks.
- This episode may test whether investors view this as more serious than past confrontations.
Senate Pushback Risks Nominations
- Senator Tillis signaled he may block confirmations in response, marking a major Hill intervention.
- That move could scuttle any near-term White House nominee for Fed chair or other appointments.