The Jacob Shapiro Podcast Fed Under Fire
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Jan 16, 2026 Economist Mike Konczal, a Senior Director of Policy Research at the Economic Security Project, dives into the political pressure mounting against the Federal Reserve. He discusses the implications of tariffs and immigration policy on inflation and the economy, and analyzes the fragile state of the labor market beneath optimistic headlines. Mike also shares insights on the potential risks of expanding presidential control over the Fed and offers a cautiously optimistic outlook despite the uncertainties facing U.S. economic policies.
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Escalation Against Fed Independence
- The criminal probe of Jerome Powell marks a clear escalation in the executive's pressure campaign on the Fed.
- Mike Konczal says this threatens Fed independence and could have major future economic consequences if it continues.
Watch For Institutional Pushback
- Watch institutional checks: markets expect the Senate and courts to push back before Fed policy shifts drastically.
- Konczal advises that immediate economic fallout is limited but could become severe if removals of board members accelerate.
Global Central Banks Notice U.S. Pressure
- Foreign central banks publicly signaled solidarity with the Fed, highlighting global concern over political threats.
- Konczal argues international actors are noticing U.S. assaults on independent institutions and may reevaluate dollar trust over time.