Closing Bell Closing Bell Overtime: Markets Search for a Bottom as Fed Pressure Builds and Energy Risks Mount 3/13/26
Mar 13, 2026
Leon Panetta, former Defense Secretary and CIA Director, on military options, Strait of Hormuz risks, and paths to ceasefire. Amon Javers, Washington reporter, on DOJ subpoenas, Fed legal fights, and political fallout. They discuss market pressure from Washington, oil and energy risks, and what rising geopolitical tension means for investors.
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Judge Finds Political Motive Behind Fed Subpoenas
- A federal judge quashed DOJ subpoenas to the Federal Reserve, citing political motivation driven by the president's posts against Jerome Powell.
- Judge Boasberg concluded subpoenas' dominant purpose appeared to be harassment or pressure to force Powell out, stalling the Warsh confirmation process.
Expedite Background Checks To Avoid Fed Gap
- Confirmation timing for Kevin Warsh depends on background checks and Senate votes with Powell's term ending May 15, so hearings must be expedited to replace him on schedule.
- Senator Tom Tillis's opposition makes Senate action unlikely until legal appeals conclude, meaning plan contingencies for continued Powell leadership.
Powell Could Stay Leading The FOMC Despite Nominee
- Fed leadership uncertainty may leave Powell in place even if Warsh is confirmed, since the FOMC can keep Powell chairing meetings for the year.
- Long-term legacy considerations may influence Kevin Warsh to avoid appearing politically compliant if confirmed.