The Fox News Rundown Business Rundown: Fed Chair On Hot Seat, As Criminal Probe Rocks the Federal Reserve
Jan 12, 2026
Gary Kaltbaum, President of Kaltbaum Capital Management and Fox Business contributor, joins the discussion on the criminal investigation into Federal Reserve Chair Jerome Powell. He argues that the probe seems politically motivated and reflects on Powell’s rate policies. Kaltbaum also highlights market reactions, raising concerns about premature rate cuts potentially fueling inflation. He critiques the Fed's unchecked power and discusses the implications of Trump's proposed credit card rate cap. The conversation touches on housing affordability and shifting inventory trends.
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Powell Under DOJ Scrutiny
- Jerome Powell says he is under a DOJ criminal probe tied to Fed building renovation testimony.
- The announcement adds political pressure as Trump narrows choices for the next Fed chair.
Investigation Seen As Political Pressure
- Gary Kaltbaum views the investigation as politically targeted to pressure Powell on rate policy.
- He warns that undermining central bank independence risks market instability and inflationary consequences.
Don’t React To One Market Move
- Don't overreact to a single bad market opening; assess broader market trends instead.
- Gary Kaltbaum says the market's overall strength matters more than one volatile session.