Name: Powell Says Fed Served With DOJ Subpoenas; Iran Protests Enter Third Week | Bloomberg Brief 1/12/26
Uploaded: 2026-01-12T13:24:56+00:00
Duration: 2606 s

Speakers

Thierry Wizman — Global Strategist, Macquarie Group

Avin Ram — Crypto reporter, Blockworks

Kasia Kliasinska — Bloomberg Reporter

Chloe

Vonnie Quinn — Anchor, Bloomberg

Michael McKee — International Economics & Policy Correspondent, Bloomberg

Oliver Crook — Chief European Correspondent, Bloomberg

Summary

Bloomberg Brief covers the Fed receiving DOJ subpoenas related to Chair Powell, President Trump considering options on Iran as protests continue, and market reactions including lower equity futures, a weaker dollar, record gold and silver, and a steeper long end. Thierry Wizman of Macquarie discusses Fed-independence risks, curve steepening, gold, dollar risk premium, and volatility. Other segments cover credit-card rate cap pressure, Walmart's AI partnership, Greenland, and rare-earth supply issues.

Fed Chair Powell said the central bank received DOJ subpoenas and vowed not to bow to political pressure.
Equity futures and the dollar fell while gold and silver hit records and the long end of the Treasury curve steepened.
President Trump said the U.S. is considering strong options on Iran as protests enter a third week.
Thierry Wizman warned Fed-independence concerns could steepen the curve and support gold, while low implied volatility makes betting on volatility attractive.
Credit-card lenders fell after Trump called for a 10% interest-rate cap; Walmart rose on an Alphabet AI partnership.
Other topics included Greenland security, Venezuela oil policy, Cuba, and rare-earth supply tensions.

Ideas

Avin Ram Crypto reporter, Blockworks 12:13

Fed tensions keep dollar at discount

The dollar is already trading at about a 3% risk premium discount to modeled values because of Fed independence concerns. If tensions with the Fed escalate, that premium will widen and the dollar will continue to trade at a discount. The Supreme Court tariff ruling is another risk event.

Avin Ram Crypto reporter, Blockworks 14:14

Gold has multiple drivers, next 10% easier

Gold is supported by seasonal first-quarter demand from India and Lunar New Year, geopolitical tensions in Iran, a dollar risk premium, and fiat-currency debasement concerns that question the U.S. balance sheet. With so many drivers, the next 10% move higher should be easier.

Thierry Wizman Global Strategist, Macquarie Group 29:09

Fed independence risk steepens curve, lifts gold

Concerns about Fed independence and political pressure will push the Fed toward a structurally dovish policy stance, steepening the U.S. yield curve as long-term yields rise relative to short-term yields. The same Fed-independence concerns are reflected in gold prices. Additionally, if the Supreme Court rules the tariffs illegal, deficits and long-term bond supply could rise, reinforcing curve steepening.

Thierry Wizman Global Strategist, Macquarie Group 33:54

Iran boots on ground hurt dollar

If the U.S. undertakes a military incursion or puts boots on the ground in Iran, it would be very bad for the dollar. A regime falling under its own weight could be positive for U.S. geopolitical management, but transition uncertainty remains.

Thierry Wizman Global Strategist, Macquarie Group 34:46

Bet on higher volatility, not direction

Implied volatility is low despite numerous geopolitical and domestic risks, leaving markets with a lot of hypothetical volatility. Rather than taking difficult directional views, betting on higher volatility could make money.

Kasia Kliasinska Bloomberg Reporter 40:15

Rare earths supply risk from China-Japan spat

China is using its dominant rare earths position as leverage in its dispute with Japan, constraining access to metals needed for cars and smartphones. Japan is trying to use the G7 to find alternative supplies, while the U.S. is trying to increase its own production, creating a supply-chain theme to monitor.

Powell Says Fed Served With DOJ Subpoenas; Iran Protests Enter Third Week | Bloomberg Brief 1/12/26

Summary

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