Bloomberg Businessweek Powell Probe Stirs GOP Concern, Threat to Stop Trump Nominee
Jan 12, 2026
Heather Long, Chief Economist at Navy Federal Credit Union, discusses the Federal Reserve's independence and insights into consumer spending amid a K-shaped economy. Aaron Cannon, CEO of Clear Harbor Asset Management, evaluates market reactions to the DOJ probe and the implications for monetary policy, while emphasizing gold as a strategic hedge. Paige Smith, consumer finance reporter, explores Trump's credit card rate cap proposal and its potential impact on credit availability. Nick Wadhams provides analysis on the ongoing protests in Iran and U.S. responses to the escalating situation.
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Powell's Rare Public Defense
- Jerome Powell publicly pushed back strongly after perceived DOJ pressure on the Fed, signaling a rare defense of independence.
- Heather Long says Powell may stay on as governor to protect the institution if he feels independence is threatened.
Senate Roadblocks To Fed Nominations
- Republican senators including Thom Tillis threatened to block Fed nominees until the DOJ issue is resolved.
- Heather Long warns that committee deadlock could prevent Trump's Fed picks and complicate confirmations.
K-Shaped Consumer Recovery
- Navy Federal's credit-card data reveal a K-shaped recovery with divergent consumer spending by income.
- Heather Long pins the top 20% (>$170k) spending up while lower-income groups cut spending, signaling uneven recovery.