WSJ’s Greg Ip: Powell criminal probe isn’t the last attempt by Trump to corral Fed independence

Summary

Greg Ip discussed December CPI and the Fed rate outlook, saying core inflation was moderate but not enough to force another cut unless the labor market weakens. He also assessed the political blowback from the Powell criminal probe and warned that Trump is likely to keep pressuring Fed independence. Ip noted that leading successor candidates have signaled they would lower rates. The segment ended with a brief bullish market quip from Joe Kernen.

• December core CPI came in lower than expected and inflation remains relatively moderate.
• Greg Ip said the CPI report does not push the Fed toward another rate cut on its own.
• Further labor-market weakness could remove an inflation obstacle to Fed easing.
• The alleged criminal probe of Powell prompted severe blowback among policy figures.
• Greg Ip warned the probe is unlikely to be Trump's last attempt to pressure Fed independence.
• Trump has repeatedly challenged Fed officials and made lower rates a priority for Powell's successor.
• Leading candidates Kevin Hassett and Kevin Warsh have publicly suggested they would lower rates.
• Joe Kernen ended the segment expressing broad market optimism and predicting more new highs.