Macro Mondays Open War: Trump Targets the Fed
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Jan 12, 2026 Tensions rise as the Trump administration targets the Federal Reserve, prompting Jay Powell to defend Fed independence. The hosts delve into market reactions, with gold and silver prices soaring amidst uncertainty. They discuss Trump's urgent policy moves and critique his proposal for credit card rate caps. Investment strategies shift towards metals and Bitcoin in response to a weakening dollar. The podcast also touches on broader themes of market rotation and state capitalism, highlighting new investment opportunities in AI and U.S. infrastructure.
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Fed Pushback Equals Political Escalation
- Jay Powell publicly framed DOJ subpoenas as political intimidation of the Fed and defended Fed independence.
- Andreas Steno Larsen and Mikkel Rosenvold view the move as an unprecedented escalation in U.S. politics and markets.
Market Moves Small, Political Risk Large
- Markets reacted modestly with small curve moves despite the political drama.
- Andreas argues the immediate market impact is limited but the political risk to Fed functioning is significant.
Power Vacuum Could Paralyze Policy
- The conflict raises the risk of a lame-duck Fed if Powell is removed or blocked, potentially reducing policy decisiveness.
- Andreas thinks near-term policy may remain data-driven until a new chair is installed in May, limiting immediate impact.