Politics Weekly America Is Trump regretting his battle with the Fed?
10 snips
Jan 16, 2026 Heather Boushey, an economist and former member of the White House Council of Economic Advisers, discusses the startling criminal investigation into Jerome Powell, the Fed chair, and its political fallout for Trump. They delve into Trump's relentless push for lower interest rates and the impact of rising prices on American households. Boushey highlights the risks for the GOP as economic discontent grows, and she contrasts Trump’s reactions to protesters at home and abroad, warning of potential democratic erosion. It's a thought-provoking look at the interplay between politics and economics.
AI Snips
Chapters
Transcript
Episode notes
Investigation Signals Political Pressure On The Fed
- The DOJ opened a criminal probe into Fed chair Jerome Powell after tensions over interest rates escalated.
- The move reflects a political attack on an independent central bank rather than routine oversight.
Trump's Policies Contradict His Rate Demands
- Trump wants lower interest rates to ease mortgage and living costs, but his policies worsen affordability.
- Heather Boushey argues his tax and tariff decisions have directly pushed prices and housing costs higher.
Renovation Costs Became A Political Flashpoint
- The probe centers on cost overruns for renovating the Fed's century-old headquarters, including marble features.
- Powell was accused of lying about renovation costs during congressional testimony, which became a political proxy battle.