Squawk Pod: Debating the DOJ’s Criminal Investigation into Jay Powell (01/13/2026)

Episode Overview

This episode dives deep into the Department of Justice's (DOJ) criminal investigation into Federal Reserve Chair Jay Powell, a move that sent shockwaves through Washington and rattled traditionally unified Republican ranks. The conversation, led by Joe Kernen, Becky Quick, and Andrew Ross Sorkin, features extensive reporting by CNBC’s Eamon Javers and a wide-ranging interview with former House Speaker Kevin McCarthy. The hosts debate implications for Fed independence, partisan fractures, White House influence, and broader questions of oversight, accountability, and the unprecedented concentration of executive power in President Trump’s second term. The episode closes with a preview of Becky Quick’s Warren Buffett special.

Table of Contents

1. The DOJ’s Criminal Probe into Jay Powell
2. Republican Break and Political Dynamics
3. Fed Independence, Market Impacts, and Accountability
4. White House Authority and the Tariff Announcement
5. Interview: Kevin McCarthy on Trump’s Power and Party Dynamics
6. Debate: Executive Style, Outcomes & Public Perception
7. Warren Buffett: Cash, Investments & Philosophy
8. Notable Quotes

The DOJ’s Criminal Probe into Jay Powell

Key Points

• The DOJ announced a criminal investigation into Federal Reserve Chair Jay Powell’s oversight of a major Fed construction project, sending shockwaves through markets and Washington.
• The probe triggered bipartisan backlash, especially among Republicans who, for the first time in Trump’s administration, broke ranks to criticize the move—a pivotal moment for institutional norms and the concept of central bank independence.

Becky Quick: “A lot of concerns about what happened with Jay Powell and what the Federal Reserve had received in terms of some of those criminal inquiries. We'll continue to talk about that today.” (02:24)

Republican Break and Political Dynamics

Key Points

• The hosts examine the unusual fissures among Republicans, noting strong public pushback from key senators and party leaders.
• The dissension is seen as a rare rupture in the usually unified GOP and indicative of larger questions about the President’s influence and party loyalty.

Joe Kernen: “This is one of the first times I think we've ever seen, frankly, a break in the party like this over almost any issue since the beginning of the administration.” (05:08)

Eamon Javers: “Give Republicans a little more credit … they're not in lockstep.” (01:22; see also 05:19)

• The Wall Street Journal reported that high-profile Republicans, including “Scott Bessen,” called the President personally to express anger over the probe, warning of potential market turmoil and suggesting the need for an “off-ramp” to end the investigation. (04:37)

Fed Independence, Market Impacts, and Accountability

Key Points

• There is vigorous debate about the seriousness of the threat to Fed independence.
• Some Republicans and market players believe the strong backlash actually shows the resilience of U.S. institutional independence, while others see the probe as an attempted power grab meant to sway monetary policy.

Katie Kramer: “So many people speaking out against what I think yesterday ... you have Republicans with senators who are saying we're not going to go along with this. I think that probably reinforced the markets.” (03:28)

Eamon Javers: “The people that don't like Powell said that that was an attempt to get a market check ... and that he was hoping for some, some chaos and the markets to prove his point. And that didn't happen.” (03:38)

• On accountability, the hosts explore ways government can oversee waste without undermining independent agencies:
  • Congressional hearings and inspector general reviews (not criminal indictments) are highlighted as preferred alternatives for scrutinizing Fed expenditures. (12:52-14:03)
  • The unique funding of the Fed—through its own operations, not Congressional appropriation—complicates the argument for taxpayer oversight. (13:45)

Andrew Ross Sorkin: “There are inspectors general … they go into government and investigate waste, fraud, and abuse. There’s also … the congressional hearing. The Fed is a slightly different beast because it is separate and apart … so there's a real question here about whether these even are taxpayer dollars.” (12:52)

White House Authority and the Tariff Announcement

Key Points

• Eamon Javers breaks the news of President Trump’s abrupt announcement: imposing a 25% tariff on any country conducting business with Iran, notably impacting top Iranian trading partners such as China, Iraq, and the UAE. (08:50–10:20)
  • The legality and broader market/economic implications remain unclear and are viewed as part of Trump’s unpredictable style of international and economic policy.
• The hosts note the White House’s denial of influencing the DOJ investigation, but question the credibility and implications for executive overreach.

Eamon Javers: “The president’s position still is that he has nothing to do with this … White House Press Secretary Caroline Levitt told us yesterday the President did not direct this.” (11:36)

Interview: Kevin McCarthy on Trump’s Power and Party Dynamics

Key Points

• Former House Speaker and now Alpha Institute Chair Kevin McCarthy joins to discuss the situation and Trump’s unique leadership style in his historic second term:

Becky Quick: “President Trump is at a stronger position than I think even Ronald Reagan was at any given time. We have not seen a president with this type of power since Roosevelt.” (19:21; 23:07)

• McCarthy and the panel discuss Republican dissent (with particular reference to Senator Thom Tillis and others) and the impact on upcoming confirmations, party discipline, and the practicalities of governance.

Becky Quick: “It's going to make it a little harder when it comes to confirmation hearings. It's going to raise different questions.” (19:29)

• McCarthy defends Trump’s shakeup of defense procurement (cutting dividends, buybacks, CEO pay to force innovation and faster delivery) as a negotiating tactic, not a shakedown, and contrasts it with slow Congressional inaction. (27:10–28:22)

Debate: Executive Style, Outcomes & Public Perception

Key Points

• The panel weighs whether Trump’s “disruptive” style—leveraging “shakedown” tactics, public pressure, or unconventional announcements—delivers much-needed results or crosses ethical lines.
• They acknowledge public discomfort with the means versus the ends, and frame the question as central to the next midterm and election cycle.

Joe Kernen: “To the extent that he's effectuating the things he said he wanted to do, he's doing it. … The question is whether you think the American public likes the way he's getting there.” (29:41)

Becky Quick: “With every great successful CEO, they have to upset the apple cart. ... You can't be nice to everybody ... He has set the world in a different order right now. And it's been successful for America.” (29:58)

Warren Buffett: Cash, Investments & Philosophy

Key Points

• Closing out the episode, the hosts promote Becky Quick’s special “Warren Buffett: A Life and Legacy,” sharing new insights from Buffett:

Warren Buffett (clip): “Cash is not a good asset. … You always need to have it available because you do not know what will happen.” (33:40–34:13)

• The panel jokes about Buffett’s refusal to consider bitcoin or gold as investments, reaffirming his focus on productive, understandable, cash-generative businesses. (34:33–35:21)

Notable Quotes by Timestamp

• Joe Kernen (05:08): “This is one of the first times I think we've ever seen, frankly, a break in the party like this over almost any issue since the beginning of the administration.”

• Eamon Javers (11:36): “The president’s position still is that he has nothing to do with this … White House Press Secretary Caroline Levitt told us yesterday the President did not direct this.”

• Andrew Ross Sorkin (12:52): “There are inspectors general … they go into government and investigate waste, fraud, and abuse … The Fed is a slightly different beast … so there's a real question here about whether these even are taxpayer dollars.”

• Becky Quick (23:07): “President Trump is at a stronger position than I think even Ronald Reagan was at any given time. We have not seen a president with this type of power since Roosevelt.”

• Joe Kernen (29:41): “To the extent that he's effectuating the things he said he wanted to do, he's doing it. … The question is whether you think the American public likes the way he's getting there.”

• Becky Quick (29:58): “With every great successful CEO, they have to upset the apple cart ... He has set the world in a different order right now. And it's been successful for America.”

• Warren Buffett (33:40): “Cash is not a good asset … You always need to have it available because you do not know what will happen.”

Timestamps for Key Segments

• DOJ Jay Powell Probe and Market Impact: 01:03 – 06:50
• Fed Oversight and Accountability: 11:59 – 14:36
• White House Tariff Announcement on Iran: 08:50 – 10:20
• McCarthy Interview: Trump’s Power and GOP Dynamics: 18:06 – 25:33
• Fed Independence and ‘Shakedown’ Debate: 25:53 – 29:41
• Becky Quick’s Warren Buffett Special Preview: 33:13 – 35:21

This episode stands as an uncommonly frank exploration of institutional crisis in Washington, the boundaries of executive authority, the mechanics of oversight, and the raw, disruptive style of current U.S. leadership—and asks whether the results justify the means. A must-listen for anyone tracking U.S. politics, economic policy, and the fate of Fed independence.