Squawk Pod: Investigating the Fed. Reserve: Kevin Hassett & Sen. Mark Warner - 01/12/26 | Audio Only

Summary

The episode focuses on the DOJ criminal investigation into Fed Chair Jerome Powell and the broader debate over Federal Reserve independence. Kevin Hassett discusses the probe, the economy, rates, and the labor market, while Senator Mark Warner criticizes the Fed pressure and covers Venezuela, Iran, immigration enforcement, and proposed credit card rate caps. Hosts also discuss market and bond-market reactions, lawfare concerns, and government equity stakes in chip companies.

• Federal prosecutors are investigating Powell over Fed renovation testimony, with Powell calling it a pretext tied to monetary policy pressure.
• Kevin Hassett says he respects Fed and DOJ independence but highlights Powell-era inflation and high rates; he calls the economy strong under Trump policies.
• Hassett points to GDP growth above 5%, onshoring, and expected job gains, while noting government layoffs and deportations distort labor data.
• Senator Mark Warner calls the Fed pressure political retribution and warns it is bad for the economy and price stability.
• Warner is skeptical of quickly rebuilding Venezuela's oil infrastructure and questions the cost and funding of the Venezuela operation.
• Warner criticizes arbitrary credit card rate caps and government equity stakes in companies like Intel, warning they distort markets and may deter TSMC.
• Immigration enforcement, Iran's nuclear timeline, and geopolitical interventions are also debated without clear market calls.
• The hosts note no major bond-market reaction yet to the Fed investigation and preview a Warren Buffett special.