Squawk on the Street The DOJ's Powell Probe, Trump Slams Exxon Mobil, Apple-Gemini AI Connection 1/12/26
Jan 12, 2026
Fed Chair Jerome Powell faces a DOJ probe related to his testimony, sparking fears over Fed independence. Trump staunchly opposes Exxon Mobil's stance on Venezuela, promising repercussions. Meanwhile, Apple's Eddy Cue reveals exciting insights on leveraging Google's Gemini AI for future developments. The hosts dissect the 'sell America' trade, along with the potential impact of political pressure on Fed leadership. They also spotlight Paramount's legal battle with Warner Bros. and Walmart's ambitious e-commerce strategy against Amazon.
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Probe Risks Politicizing The Fed
- Jim Cramer and David Faber argue the DOJ probe of Powell threatens Fed independence and could politicize monetary policy.
- They warn that criminalizing oversight risks future chairs following presidential wishes rather than economic evidence.
Think Twice Before Taking The Fed Job
- Jim Cramer advises potential Fed chairs will need top legal teams and should expect political pressure if they take the job.
- He recommends avoiding the role unless you can endure potential personal and legal attacks.
Rate Cap Could Choke Credit Supply
- The hosts say a one-year 10% cap on credit card rates would severely hurt card issuers and reduce lending.
- They predict reduced consumer spending and potential economic downside if banks pull back from unsecured lending.