Fed investigation is politically motivated, Powell says

Summary

Marketplace Morning Report

Episode Title: Fed investigation is politically motivated, Powell says
Date: January 12, 2026
Host: Sabri Benishore (in for David Brancaccio)
Guests: Nancy Marshall Genzer (Marketplace), Abraham Ravid (Yeshiva University Finance Professor)

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Episode Overview

This episode centers on two primary news stories affecting the business and economic landscape:

• The Justice Department's investigation of the Federal Reserve—a move Fed Chair Jerome Powell claims is politically motivated retaliation by the Trump administration.
• Ongoing consolidation battles in the entertainment industry, specifically the fight for ownership of Warner Brothers Discovery, and the implications of mergers for Hollywood filmmaking.

Through quick interviews and on-the-ground perspectives, the episode distills ongoing tensions between government branches and the impacts of media consolidation, giving listeners context for major headlines of the day.

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Key Discussion Points & Insights

1. Federal Reserve vs. White House: Politically Motivated Investigation

[01:02 – 03:10]

• Backdrop:

  • The Justice Department has served the Federal Reserve grand jury subpoenas concerning office building renovations.
  • Fed Chair Jerome Powell released an unusually direct Sunday video statement, asserting the investigation is not about renovations but political pressure.

• Powell's Position:

  • Powell claims the DOJ is threatening criminal indictment over his Senate testimony about renovations, but calls it a "pretext" for undermining Fed independence.
  • Quote [01:56 | Jerome Powell]:

    "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's Response:

  • In an NBC interview, President Trump denied knowledge of the investigation, stating the only pressure on Powell was that "rates are far too high."
  • Quote [02:25 | Nancy Marshall Genzer paraphrasing Trump]:

    "The only pressure on Powell is that, quote, rates are far too high."

• Congressional Reaction:

  • Bipartisan outrage:
    • Republican Thom Tillis (NC): Announced he will oppose confirming any Fed nominee until the legal matter is resolved.
    • Democrat Elizabeth Warren (MA): Accused Trump of abusing the law; said the Senate must not confirm any Trump Fed nominee.
  • Quote [02:42 | Nancy Marshall Genzer]:

    "Senators on both sides of the aisle are upset about this. North Carolina Republican Thom Tillis said on X that he'll oppose the confirmation of any nominee for the Fed until, quote, this legal matter is fully resolved. Massachusetts Democrat Elizabeth Warren posted on X that Trump is abusing the law and, quote, the Senate must not move any Trump Fed nominee."

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2. Hollywood Consolidation and Warner Brothers Discovery

[04:13 – 07:45]

• The Battle for Warner Brothers:

  • Warner Brothers Discovery, which controls HBO and CNN among other properties, is at the center of an acquisition battle: Netflix (the preferred buyer for Warner's board) faces a hostile bid from Paramount Skydance.
  • The stakes: The winner could reshape the moviemaking landscape—echoes of past industry consolidations.

• Insight from Abraham Ravid (Interview at Manhattan Cinema):

  • On shelving movies for tax write-offs:

    • Ravid explains that shelving completed movies (as happened in the 2022 WarnerMedia-Discovery merger) is a business strategy to save on marketing costs and benefit from tax write-offs if a film isn't expected to earn profits.
    • Quote [05:13 | Abraham Ravid]:

      "If you have a movie that you've made and you don't think it's any good...by shelving the movie, you save the marketing costs. And if you don't think you're going to make any money, then a tax write off might be the right thing to do."

  • Does consolidation mean fewer movies?

    • Ravid notes that while consolidation doesn't automatically lead to fewer films, companies may strategically release fewer titles to avoid internal competition.
    • Quote [05:56 | Abraham Ravid]:

      "In principle, not necessarily. In practice, they might decide to have fewer movies at every point in time so that there's no competition...So that basically you might, at every point in time, you might have fewer movies. On the other hand, studios are now also trying to strategically time their releases..."

  • Does consolidation make movies more boring?

    • When there are fewer studios, filmmakers have fewer potential buyers, so they may have to cater more to the large studios' tastes, leading to less variety and risk-taking.
    • Quote [06:50 | Abraham Ravid]:

      "If you as a movie maker have fewer places to go, then you will have to cater to the studio that you're going to...If there are five studios, you can go and...make competing offers to other studios."

  • Favorite upcoming movie:

    • Ravid expresses interest in "Marty Supreme" showing at the cinema—adding a personal and light ending to the segment.

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Notable Quotes & Memorable Moments

• Jerome Powell on Fed independence [01:56]:

  "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."

• Abraham Ravid on the rationale for shelving films [05:13]:

  "By shelving the movie, you save the marketing costs. And if you don't think you're going to make any money, then a tax write off might be the right thing to do."

• Ravid on reduced competition among studios [06:50]:

  "If you as a movie maker have fewer places to go, then you will have to cater to the studio that you're going to."

• Lighthearted moment – Ravid on his movie pick [07:21]:

  "I would really like to see of the movies they're playing now and I haven't seen yet. Marty. What is this thing called, Marty? Supreme. Sounds interesting.”

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Segment Timestamps

• [01:02 – 03:10] – Deep dive into the Justice Department's investigation of the Fed, Powell's accusations, Trump and Congressional responses.
• [04:13 – 07:45] – The consolidation fight for Warner Brothers Discovery, analysis of movie industry mergers, and impacts on film output and creativity with Professor Abraham Ravid.

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Conclusion

In under ten minutes, the Marketplace Morning Report delivers crisp, insightful coverage of two significant business stories: an unprecedented clash between the Federal Reserve and the executive branch, and the consolidation trend that continues to reshape the entertainment industry. With pointed analysis and on-the-ground reporting, the episode gives listeners the essential context and competing perspectives to understand these fast-moving developments.

Transcript

[Sabri Benishore]

Whether it's making fake snow with baking soda and shaving cream or laying tarps down to keep real snow off the sidewalk, there are all kinds of hacks for whatever winner throws at you.

[Abraham Ravid]

Except when it comes to COVID 19, there is no hack. I'm Dr. Simone Wiles, an infectious disease expert, and if you do get sick with the virus, prescription medications exist. If you are high risk, ask your doctor if they're right for you. And learn [e-mail].

[Sabri Benishore]

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[Sabri Benishore]

The president's campaign to influence the country's central bank just took a dramatic turn from Marketplace. I'm Sabri Benisure, in for David Brancaccio. The Federal Reserve says it's being investigated by the Justice Department. Officially, it's about a renovation of some Fed office buildings. But in an unusual Sunday video statement, Fed Chair Jerome Powell said the Trump administration is motivated by something else. Marketplace's Nancy Marshall Genzer joins us with the latest. Hi, Nancy.

[Nancy Marshall Genzer]

Good morning.

[Sabri Benishore]

So President Trump has been very critical of Chair Powell. He's threatened to fire him now to sue him. What is behind this investigation?

[Nancy Marshall Genzer]

Well, according to Powell, the Justice Department served the central bank with grand jury subpoenas on Friday. And Powell says the DOJ is threatening a criminal indictment over his Senate testimony last year about those renovations. But Powell says that's a pretext.

[Podcast Sponsor Announcer]

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.

[Sabri Benishore]

Now, President Trump talked with NBC about this last night. What do you have to say?

[Nancy Marshall Genzer]

Well, the president told NBC he doesn't know anything about the investigation. Trump said the only pressure on Powell is that, quote, rates are far too high.

[Sabri Benishore]

Congress has oversight of the Fed and would have to confirm any Fed nominees. Does Congress have anything to say about all this?

[Nancy Marshall Genzer]

Yeah. Senators on both sides of the aisle are upset about this. North Carolina Republican Thom Tillis said on X that he'll oppose the confirmation of any nominee for the Fed until, quote, this legal matter is fully resolved. Massachusetts Democrat Elizabeth Warren posted on X that Trump is abusing the law and, quote, the Senate must not move any Trump Fed nominee.

[Sabri Benishore]

All right, Marketplace, Nancy Marshall Genzer, thank you so much.

[Nancy Marshall Genzer]

You're welcome.

[Jimmy Allen]

Every company wants to grow, but anyone who's scaled knows the truth. Growth creates complexity and complexity kills growth. Bureaucracy creeps in. Culture frays, and suddenly the energy that built your business starts working against it. If you want unfiltered insight on fighting that drift, check out Founders the CEO Sessions with executive advisor Jimmy Allen. Each episode, leaders from companies like Audible, Walmart, China and AWS reveal how they stayed fast, focused and human, even at massive scale. Founders mentality. The CEO Sessions business should be simple. Listen wherever you get your podcasts.

[Sabri Benishore]

Warner Brothers Discovery owns hbo, cnn, a movie studio, lots more. The fight over who will own Warner Brothers and is still very up in the air. Netflix wants it and Warner Bros. Board wants Netflix to get it. But Paramount Skydance also wants Warner Bros. And has launched a hostile bid to get it. One way or another, the deal is gonna change the moviemaking landscape. We know this because we've seen this movie before. Consolidation isn't new. And to help us take a look at what history can tell us, we went to a movie theater on Manhattan's Upper west side where we met up with Yeshiva University finance professor Abraham Ravid. Now, Warner Brothers we are talking about was formed from a merger between WarnerMedia and Discovery in 2022. And one thing that happened then that I found to be so insane is they they literally shelved fully made movies to get a tax write off. Would that happen again, do you think?

[Abraham Ravid]

It certainly is a a business strategy. In other words, if you have a movie that you've made and you don't think it's any good, what are you going to do? Now, marketing is very expensive. Marketing tends to be a significant percentage of the overall cost of the movie. So by shelving the movie, you save the marketing costs. And if you don't think you're going to make any money, then a tax write off might be the right thing to do.

[Sabri Benishore]

Avatar 3 is showing in this theater. Now Avatar used to be owned by 20th Century Fox. Now it's owned by Disney. It's still here. Does consolidation in the entertainment industry mean fewer movies?

[Abraham Ravid]

In principle, not necessarily. In practice, they might decide to have fewer movies at every point in time so that there's no competition, so their own movies will not be competing with each other. So that basically you might, at every point in time, you might have fewer movies. On the other hand, studios are now also trying to strategically time their releases so that they're not competing with some big movie from another studio. So I don't think it's clear.

[Sabri Benishore]

So if it's, if it's not clear whether consolidation means fewer movies get made, does consolidation make movies more boring? Like, the bigger the audience the film is intended for, the less edgy it is?

[Abraham Ravid]

I think what happens is if you as a movie maker have fewer places to go, then you will have to cater to the studio that you're going to. Let's assume that they all consolidate to one big studio. So if the studio chief doesn't like what you're offering, you're on your own. If there are five studios, you can go and, you know, make competing offers to other studios.

[Sabri Benishore]

Are there any movies coming out soon that you really want to see?

[Abraham Ravid]

I would really like to see of the movies they're playing now and I haven't seen yet. Marty. What is this thing called, Marty? Supreme. Sounds interesting.

[Sabri Benishore]

That's playing here. You can see that now if you want.

[Abraham Ravid]

Oh, all right. Maybe I'll stay and watch it then. Yeah.

[Sabri Benishore]

Avre Ravid, professor of finance at Yeshiva University. Thank you so much for coming out here and talking movies with us.

[Abraham Ravid]

Thank you, Sabri. It was my pleasure.

[Sabri Benishore]

In New York, I'm Sabri Benishore with the Marketplace Morning report. From apm, American Public Media. Hey, everybody, it's Kai Rysdal, the host of Marketplace. It has been a year since the.

[Jimmy Allen]

Fires here in Los Angeles, and businesses.

[Sabri Benishore]

That burned are still struggling.

[Abraham Ravid]

You know, I won't lie. I've looked, I've looked at, you know.

[Podcast Sponsor Announcer]

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[Abraham Ravid]

It just, it wouldn't be the same.

[Jimmy Allen]

Hardware store on the ground reporting and what the year ahead has in store.

[Sabri Benishore]

For business owners still recovering. Listen to Marketplace on your favorite podcast. Apparently.