Anderson Cooper 360 Trump DOJ Probe Of Fed Chair Faces Backlash
Jan 13, 2026
In this discussion, Rana Foroohar highlights the dangers of politicizing the Federal Reserve, cautioning that it could destabilize markets and harm the dollar. Xochitl Hinojosa critiques the Justice Department's motives behind the investigation into Jerome Powell. Senator Amy Klobuchar shares details on Minnesota's lawsuit against federal actions and the overwhelming impact on local law enforcement. Ellie Honig evaluates the legal viability of the lawsuit, warning of possible conflicts in state and federal probes.
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Probe Framed As Threat To Fed Independence
- The DOJ served grand jury subpoenas to the Fed over Powell's Senate testimony about renovations.
- Former Fed chairs condemned the probe as an attack on central bank independence.
Public Pressure Undermines Monetary Credibility
- President Trump has repeatedly criticized Powell for not cutting rates and publicly discussed firing him.
- That sustained public pressure creates the appearance of politicizing monetary policy decisions.
Use Oversight For Fed Spending Questions
- Use congressional oversight, not criminal probes, to address federal spending concerns about the Fed building.
- Let legislatures investigate budgeting rather than turning to DOJ for policy disputes.