The Playbook Podcast Fed up
Jan 12, 2026
Jerome Powell, the Federal Reserve chair, faces a criminal investigation from Trump's Justice Department over his Congressional statements. The discussion highlights concerns about the political pressure threatening the Fed's independence. Business leaders worry about the economic ramifications of this inquiry, likening it to past political retaliation. The conversation also touches on protests in Iran and increased federal presence in Minnesota, as well as a notable public appearance by Pence with Elon Musk.
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Political Threat To Fed Independence
- The DOJ subpoena of Jerome Powell signals a direct political threat to Fed independence.
- Jack Blanchard warns this could force monetary policy to be set by political pressure rather than evidence.
Market Risk From Targeting Powell
- Business leaders and market experts view moves against Powell as highly risky for markets.
- Dasha Burns notes many in the president's circle warned against escalating pressure because of economic consequences.
Retaliation Narrative Assumed
- The DOJ action is widely assumed to be political retribution rather than a neutral legal move.
- Jack Blanchard compares it to past attempts to prosecute political foes and says it feels normalized now.