WSJ Opinion: Potomac Watch Trump's War on the Federal Reserve Escalates With a Criminal Subpoena
Jan 12, 2026
Joe Sternberg, a Wall Street Journal contributor, and Elliot Kaufman, a national security analyst, dive into the latest political turmoil. They discuss Fed Chair Jerome Powell’s defense against a criminal subpoena linked to interest rate policies. The conversation shifts to the urgent situation in Iran, where a violent crackdown on protests raises questions about U.S. intervention. Kaufman highlights the dire need for leadership within Iran, while the panel debates the risks of military action and support for the protesters. A compelling mix of politics and global affairs!
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Subpoena Framed As Attack On Fed Independence
- Jerome Powell framed the subpoena as an attack on Fed independence and vowed to resist political pressure.
- Joe Sternberg and Paul Gigot argue the move aims to force monetary policy toward the president's preferences.
Renovation Dispute Used As Pretext
- Joe Sternberg calls the subpoena a 'bonkers' escalation tied to a renovation cost dispute.
- He sees it as a fishing expedition intended to pressure Powell over rate policy and tariffs.
Subpoena Lacks Clear Criminal Allegations
- The subpoena seeks expanded documents about Powell's congressional testimony and the renovation rather than citing clear crimes.
- Paul Gigot and Joe view perjury claims as far-fetched and see the move as politically motivated.