Bulwark Takes BREAKING: DOJ Threatens Fed Chair With Criminal Charges
Jan 12, 2026
Federal prosecutors have launched a groundbreaking investigation into Fed Chair Jerome Powell. The discussion highlights Pence's previous attempts to politicize the Fed, framing the probe as possible retaliation. The hosts analyze the implications of Powell's strong stance for Fed independence, comparing it to historical figures. They also debate the potential political motivations behind the investigation's timing. Market reactions and the future of low interest rates are examined, along with possible candidates to succeed Powell if needed.
AI Snips
Chapters
Transcript
Episode notes
Investigation Reads As Political Retaliation
- The DOJ subpoena looks like political retaliation, not a legitimate probe into renovations.
- Catherine Rampell argues the threat targets Powell for resisting presidential pressure on rates.
Call Out Politicized Actions To Rally Support
- Publicly resisting politicized prosecutions can stiffen institutional defenses and rally support.
- Powell's video aims to galvanize senators and market actors to defend Fed independence.
Fed Independence Invokes Volcker, Not Burns
- Powell is trying to protect Fed independence in the Paul Volcker tradition instead of repeating Arthur Burns's mistakes.
- Catherine says credible independence requires willingness to act unpopularly to control inflation.