Unhedged Showdown at the Federal Reserve
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Jan 13, 2026 Federal Reserve Chairman Jay Powell faces a potential criminal indictment, prompting a discussion on the implications for the Fed's credibility. The extraordinary timing of Powell's Sunday statement raises questions about political pressure. Katie and Rob explore how such controversies can impact the central bank's communication strategy and market reactions. They also suggest Wall Street should rally in defense of Fed independence. On a lighter note, they dive into the quirky 'Are You Dead?' app and the joys of reading physical books.
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Powell Calls Out Political Intimidation
- Jay Powell framed DOJ subpoenas as political intimidation aimed at punishing the Fed for not following the president's preferences.
- He argued this threatens the Fed's ability to set rates based on evidence rather than politics.
Plain Speech Stabilized Reactions
- Plain, direct central-bank communication can reassure markets and politicians quickly.
- Robert Armstrong said Powell's clear, non-hysterical tone let markets and some Republicans breathe out.
Unscheduled Statement Signaled Severity
- An unscheduled Sunday Fed statement is extraordinary and signals a serious threat.
- Katie Martin noted Powell essentially told political actors to stop interfering with monetary policy.