Closing Bell Trump Ramps Up Powell Pressure; Apple’s AI Moment 1/12/26
Jan 12, 2026
David Zervos, Chief Market Strategist at Jefferies, discusses the DOJ probe into Fed Chair Powell, warning about the potential political fallout affecting Fed independence. He critiques rising renovation costs and explores market reactions to these developments. Dan Ives from Wedbush highlights Apple’s pivotal year in AI, emphasizing its partnership with Google as crucial for success. The discussion also touches on the implications of proposed credit card interest caps on bank earnings, showcasing a blend of policy and market insights.
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Fed Probe Seen As Political Theater
- The DOJ probe into Jerome Powell risks politicizing the Fed and could slow confirmations for new Fed nominees.
- Markets treated the story as theater and largely discounted its long-term market impact.
Separate Oversight From Monetary Policy
- Investigate the renovation spending transparently but avoid dragging monetary policy into criminal probes.
- Keep scrutiny focused on finances while preserving Fed independence for policy decisions.
Markets Discount Political Noise
- Markets often become immune to political theater and discount low-probability threats quickly.
- That discounting helped stocks rebound despite the Fed controversy.