Opposition to the Trump Administration’s Criminal Investigation of Fed Chair Powell Gains Momentum
Opposition is mounting against the Trump administration’s criminal investigation of Federal Reserve Chair Jerome Powell. On Sunday evening, Powell revealed that federal prosecutors are investigating him regarding the central bank’s $2.5 billion renovation of its headquarters and his related testimony before Congress.
Powell suggested that the probe reflects President Donald Trump’s frustration with the Federal Reserve’s refusal to lower interest rates as aggressively as he has demanded. This investigation quickly ignited bipartisan criticism.
A statement released on Monday condemned the inquiry, calling it “an unprecedented attempt to use prosecutorial attacks to undermine that independence.” The statement was signed by former Fed chairs, economists, and senior officials who have served under both Democratic and Republican administrations.
Several Republican lawmakers also pushed back against the investigation. North Carolina Republican Senator Thom Tillis vowed to block any Trump appointees to the Federal Reserve in response. Lloyd Blankfein, former CEO of Goldman Sachs, went further by describing the criminal investigation as “an attempt at murder-suicide” of multiple U.S. institutions.
Market Reaction and Expert Opinions
Despite the uproar surrounding the investigation, U.S. markets climbed, with both the S&P 500 and Dow Jones Industrial Average closing at new record highs on Monday.
Former Fed Chair and Treasury Secretary Janet Yellen expressed surprise that the market wasn’t more unsettled by the news. She described the situation as “extremely chilling.”
On the other hand, Jim Lebenthal, chief markets strategist at Cerity Partners, told CNBC that investors remain focused on positive short-term factors such as a healthy economy and strong corporate earnings. However, he cautioned that this does not mean the path forward for markets is without challenges.
New Tariffs on Countries Doing Business with Iran
Adding to market uncertainties, President Trump announced on Monday that any country conducting business with Iran would face a 25% tariff, effective immediately. This move is part of the administration’s broader effort to economically isolate Iran amid ongoing massive anti-government protests in Tehran.
Additional Market Updates
– Apple has announced a multiyear partnership to use Google’s Gemini and cloud technology to power its AI-driven Siri platform and future foundational models, according to a joint statement obtained by CNBC’s Jim Cramer.
– U.S. stocks continued their upward trend, with the S&P 500 and Dow Jones Industrial Average touching fresh intraday records and closing at all-time highs. The pan-European Stoxx 600 also rose by 0.21%.
Looking Ahead: Trump’s Midterm Strategy
Wall Street increasingly interprets President Trump’s messaging as a signal that the White House will focus heavily on economic growth and affordability in the lead-up to the U.S. midterm elections this November. Analysts share insights on how investors can navigate this shifting landscape.
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Contributors: CNBC’s Dan Mangan, Jeff Cox, and Yun Li.
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https://www.cnbc.com/2026/01/13/cnbc-daily-open-powell-probe-rattles-washington-but-wall-street-shrugs.html
