CNBC Halftime Report: The DOJ Drops its Charges Against Fed Chair Jerome Powell
Date: April 24, 2026
Host: Leslie Picker (in for Scott Wapner)
Panelists: Jim Leventhal, Jenny Harrington, Kevin Simpson
Featured Contributors: Steve Liesman, Mackenzie Seagalas, Christina Parts Nevlis, Pippa Stevens
Episode Overview
This episode covers the market’s response to the Department of Justice dropping its probe into Fed Chair Jerome Powell, the likely confirmation of Kevin Warsh as his successor, and what these developments mean for rate policies and stocks. The panel analyzes Wall Street’s reactions, implications for the economy amid ongoing geopolitical tensions (especially Middle East supply disruptions), and provides live analysis of major earnings and mega-cap tech moves. The show also features in-depth discussion of Alphabet’s $40B investment in Anthropic, Intel’s earnings surge, transport sector trades, and actionable stock picks.
1. DOJ Drops Charges Against Jerome Powell: What It Means
[01:16–03:13]
- Headline: The Department of Justice has dropped its criminal investigation into Jerome Powell, clearing the way for Kevin Warsh’s confirmation as the next Fed Chair.
- Market Reaction: The NASDAQ hits a record high; the two-year yield drops a few basis points on expectations Warsh could be more dovish.
- Panel Sentiment:
- Jim Leventhal: “It’s exceedingly positive… to waste time on a nonsense investigation that is purely political is a waste of time. We don’t have that time to waste. Okay. So we’re done with it. Great. Let’s move on.” (01:56)
- Warsh is for lower rates and shrinking the balance sheet, but may face resistance inside the Fed.
- The economy “doesn’t need rate cuts right now” due to strong profit and labor market growth.
Key Quote
“There’s going to be a fractious debate on the committee. The market, the economy doesn't need rate cuts right now.”
—Jim Leventhal, (03:04)
2. Economic Outlook: Rate Cuts, Inflation, and Geopolitical Risks
[03:13–11:02]
- Steve Liesman Update: DOJ drops investigation but the IG’s inquiry remains ongoing. The Warsh nomination, previously blocked by Senator Tillis, now has a path forward.
- The two-year yield drops, but markets still see less than a 50% chance of a rate cut before July 2027 due to persistent inflation post-Iran conflict.
- AI “r-star” Debate:
- Jim: Raises debate between AI-driven productivity pushing rates down vs. AI-driven economic heat pushing rates up.
- Steve Liesman: “Billions a week are needed to invest in AI… when demand for capital goes up, it puts upward pressure on interest rates… [rate cuts] not needed in the face of it.” (05:47)
- Supply Chain Concerns (Strait of Hormuz):
- Jenny Harrington: Warns that fresh supply chain shocks due to Mideast conflict have not yet fully hit the system and could be “wildly inflationary.”
- “We haven’t even begun to see what the problems are from nothing getting out of the Strait of Hormuz for the last two months.” (07:27)
- Warsh will have to be “intelligent” in managing both possible inflation spikes and AI-driven changes.
- Kevin Simpson: Believes the market can absorb current oil prices ($70–90/bbl) but sees little immediate case for rate cuts. “We don’t need it.” (10:00)
- Longer-term hope: AI-driven efficiencies may lower inflation, but inflation from energy/supply chains is a nearer-term risk.
3. Breaking: Alphabet’s $40B Bet on Anthropic
[11:02–14:03]
- Mackenzie Seagalas reports:
- Google is reportedly investing up to $40B into Anthropic at a $350B valuation, at a time when the secondary market values Anthropic at $800B.
- The deal includes Google providing 5+ gigawatts of computing power.
- Amazon also increased its stake in Anthropic this week.
- Both companies see strategic value despite being competitors in enterprise AI.
Notable Exchange
“This $40 billion investment really just shows how big, symbiotic they think that relationship is… Anthropic CEO Dario Amade spent some of his formative years in this industry at Google.”
—Mackenzie Seagalas, (12:31)
- Panel Reaction:
- Jim Leventhal: “A year ago… people were talking about [Alphabet] going lower. Now… they’re going to make money on either side.” (14:03)
- Kevin Simpson: “If they're getting in at a 450 valuation versus what is now 800, I can't think of a better use of capital.” (15:55)
- Jenny Harrington: Focused on how capex for AI might translate to future earnings and the need for visible returns.
4. The Technology Earnings Preview: Expectations and Risks
[16:36–19:51]
- The panel previews results for Alphabet and other mega-cap tech companies.
- Jim Leventhal: Focused on whether supply can meet demand amid ongoing semiconductor/logistics bottlenecks.
- Jenny Harrington: Interested in the market’s post-earnings reactions and the impact of technological advances (e.g., brain-inspired computing) that could upend AI hardware/energy patterns.
- Worries about energy usage, efficiency, and future AI developments.
- Labor force cuts: Meta, Microsoft, and others are trimming or offering buyouts—potential labor market implications discussed.
- Kevin Simpson: Layoffs could create long-term economic headwinds, but benefit company efficiency and profit in the short run.
5. Chart of the Day: Intel’s Historic Earnings Surge
[20:49–26:46]
- Intel pops 22% to new highs; up 122% YTD.
- US government bought a stake last year; that bet has quadrupled on paper.
- Christina Parts Nevlis: “Biggest revenue beat in 5 years. Server CPU demand so strong that supply constraints held back more than a billion in revenue." (21:03)
- Foundry business still unprofitable, though.
- Multiple analysts warn the stock is priced for a major comeback—question is can the business catch up?
- Panel Reaction:
- Kevin: Bought Intel in December for diversification; “we about fell off our chair” when seeing results, but might trim into the rally. (23:02)
- Jim: “The movement today validates the idea of being a long term investor, of having an investment thesis and sticking it out.”
- Jenny: Negative—prefers stocks with strong earnings/free cash flow; sees Intel as speculative at this stage.
6. Transport Sector Trades: Beyond Mega Cap Tech
[29:36–32:55]
- Norfolk Southern & FedEx (Kevin): Looking for value and diversification outside tech, especially companies less likely to be impacted by Strait of Hormuz disruptions.
- UPS & XPO (Jenny): Highlights the need to not treat all transports equally.
- XPO: Trimmed due to stretched multiple despite year-to-date outperformance.
- UPS: Prefers for its dividend and long-term resilience but sees energy price risk.
- “If we see $90 sustained oil for a long time… that’s bad for UPS.” (31:08)
7. Other Notable Segments and Trades
Defense:
- Lockheed Martin (Jim): Remains confident despite a 9-day losing streak: “It’s just the nature of the beast. You have to stick with these things through the ups and downs.” (38:32–39:34)
Western Union (Jenny):
- Maintains position despite lower profit and a high dividend yield, citing Western Union’s entrenched global payment "pipes" as a competitive advantage.
Other trades (Kevin):
- Medtronic: Trimmed after a poor run; “timing wasn’t great” (43:49).
- Robinhood: Re-entered after a pullback, attributes success to maturing business and millennial customer base.
- ADM (Archer Daniels Midland): Bought for dividend, “slow and steady” value.
Earnings Setups and Final Trades:
- Ebay (Jim): Recently purchased, looking for a retail-driven beat.
- Cisco Systems (Jim): “Don’t fall asleep on this name. Yes, it’s value Tech, but it’s killing it.” (45:58)
- Hercules Capital (Jenny): Preferred BDC for yield and experienced management.
- Amazon (Kevin): “I love the A’s reporting next week will deliver again… retail margins are improving.” (46:27)
8. Notable Quotes – Selected Highlights
- “To waste time on a nonsense investigation that is purely political is a waste of time. We don’t have that time to waste.” —Jim Leventhal (01:56)
- “On the front end of this huge AI investment boom, it puts upward pressure on interest rates… the Fed needs to basically do nothing along those lines or at least not cut rates in the face of it.” —Steve Liesman (05:47)
- “I think there's a case to be made that the economy deteriorates and it's for all the wrong reasons… What if there is real damage to LNG supply chains? And what if that triggers inflation?” —Jenny Harrington (07:27)
- “If they're getting in at a 450 valuation versus what is now 800, I can't think of a better use of capital.” —Kevin Simpson, on Alphabet’s Anthropic investment (15:55)
- “The movement today validates the idea of being a long term investor, of having an investment thesis and sticking it out.” —Jim Leventhal, re: Intel (24:27)
- “If we see $90 sustained oil for a long time… that's bad for UPS.” —Jenny Harrington (31:08)
- “It’s just the nature of the beast. You have to stick with these things through the ups and downs.” —Jim Leventhal, re: defense stocks (39:34)
9. Timestamps for Key Segments
| Timestamp | Topic |
|---------------|----------------------------------------------------|
| 01:16 | DOJ drops investigation into Powell; Warsh's path |
| 03:21 | Steve Liesman explains the DOJ/IG/Fed dynamics |
| 05:21 | Debate: AI's impact on rates, "r-star" |
| 07:27 | Supply chain/geopolitical risks & inflation |
| 11:09 | Alphabet’s $40B Anthropic bet |
| 15:55 | Panel weighs in on Alphabet’s AI capital strategy |
| 20:49 | Chart of the Day: Intel’s blowout quarter |
| 27:31 | Semiconductor sector outperformance |
| 29:36 | Moves in the transport sector |
| 36:09 | SLB & Western Union earnings |
| 38:32 | Lockheed Martin & defense sector outlook |
| 41:53 | Mike Santoli’s Midday Word: Tech’s impact |
| 43:49 | Kevin’s new trades: Medtronic, Robinhood, ADM |
| 45:58 | Final trades: Cisco, Hercules Capital, Amazon |
10. Conclusion & Market Tone
The episode’s tone was cautiously optimistic on equities, especially technology, but attentive to risks from persistent inflation, unresolved geopolitical issues, and supply chain snarls. The DOJ's dropped charges against Powell were seen as a political “distraction removed,” but the real debate is now about how and when the Fed will act amid complex crosscurrents—high asset prices, AI-driven change, and potential for supply-shock inflation. The panel remains selective: enthusiastic about secular tech growth, but watchful for new risks and mindful of prudent positioning.
For listeners short on time:
Catch up specifically at [01:16] for the DOJ headline & Fed implications, [05:21] for the AI-and-rates debate, [11:09] for Alphabet’s gigantic AI investment, and [20:49, 29:36] for actionable sector insights in chips and transports.