‘Investigation’ or Interest Rates? – Last Friday the Justice Department served the Federal Reserve with subpoenas, Fed Chairman Jerome Powell announced in a two-minute video posted Sunday. Both the DOJ subpoenas and the normally reserved Fed chairman’s response are unprecedented, according to The Wall Street Journal.
But with just four months before President Trump names Powell’s replacement, the otherwise measured Fed chair took his gloves off. The DOJ investigation ostensibly is a reaction to the Fed’s renovation of its Marriner S. Eccles Building and adjacent Federal Reserve East Building near the National Mall in Washington, D.C. Cost of the renovation has ballooned by 30% from a $1.9 billion initial cost to $2.5 billion.
Powell testified about the renovation costs before the Senate Banking Committee last June.
Trump wants the Fed’s Open Market Committee to cut interest rates to the bare minimum in order to boost his economy. As inflation eased, but not to the Fed’s 2% target rate last year, the FOMC cut rates by 0.75% in three sessions to 3.5-3.75%.
Part of what Powell said in his Sunday video:
“I have deep respect for the rule of law and for accountability in our democracy. No one — certainly not the chair of the Federal Reserve — is above the law. But this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure.
“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress's oversight role; the Fed through testimony and other public disclosures made every effort to keep Congress informed about the renovation project. Those are pretexts. The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation.”
Trump told NBC News Monday he knows nothing about an investigation into the Fed or Powell.
“I wouldn’t even think of that,” the president said.
Meanwhile, Sen. Thom Tillis (R-NC) said he would block any nominee to replace Powell when he steps down in May until the investigation is resolve (per WSJ). –TL
________________________________________________
SAT-SUN 1/10-11/26
Unemployment Steady at 4.4% -- There’s a shibboleth about the tavern industry that it’s a good business to be in when the economy is on the skids as much as when it’s healthy. The Labor Department lists “drinking places” as a sector that fueled growth of just 50,000 jobs last month, along with food services, health care and social assistance. Despite the holidays, retail trade jobs were down.
•Limitations of Our Page Design … places Pundit-at-Large Stephen Macaulay’s column, ‘Nitpicking the Job Market’ in the left column, with Contributing Pundit Rich Corbett’s hopes for 2026 in the right column. Please be sure to read both. Email your comments on either, or both, to editors@thehustings.news and please indicate your political leanings in the subject line.
Protests in Iran Intensify – Iran’s Supreme Leader Ayatollah Ali Kamanei has announced a crackdown on protesters flooding the streets of at least 180 cities as the protests reach the two-week mark, The Wall Street Journal reports.
The Iranian army has joined the crackdown heretofore handled by police and paramilitary groups and “firmly safeguard national interests, strategic infrastructure and public property,” and blamed Israel and “terrorist groups” for fomenting unrest. Attorney Gen. Mohammad Movahedi Azad said even those who help protesters would face “enemy of God” death-penalty charges.
President Trump responded via social media: “Iran is looking at FREEDOM perhaps like never before. The USA stands ready to help!!!”
At least 65 people have been killed in the protests, according to the group Human Rights Activists in Iran, and more than 2,300 people have been arrested.
Meanwhile, Reza Pahlavi, 65, son of the Shah of Iran deposed in 1979 said on X-Twitter that the Islamic Republic would be brought “to its knees,” The Independent (UK) reports.
“Our goal is no longer merely to come into the streets; the goal is to prepare to seize city centers and hold them.” –TL
________________________________________________
FRIDAY 1/9/26
Border Patrol Shooting – Portland, Oregon Mayor Keith Wilson told a press conference Thursday that Immigration and Customs Enforcement should halt all operations in his city until a “full and independent investigation can take place” of the shooting of two men in a car by Border Patrol, per The Independent. The Department of Homeland Security says the driver was “weaponizing” the car against Border Patrol agents, and said he is believed to be a member of Venezuela’s Tren de Aragua gang.
The two men in Portland were hospitalized for injuries from the shooting a day after Renee Nicole Good was fatally shot by ICE agent Jonathan Ross in Minneapolis, where Hennepin County Attorney Mary Moriarity and Minnesota Attorney Gen. Keith Ellison announced an independent investigation after the FBI announced federal investigators alone would look into Good’s shooting. Minnesota officials have called on any citizens with evidence in the case to come forward with it.
Homeland Security Sec. Kristi Noem said Minnesota investigators “have not been cut,” The Minnesota Star Tribune reports. But she added, “They don’t have any jurisdiction in the investigation.” –Compiled and edited by Todd Lassa