Podcast Summary: Squawk Pod

Episode: Investigating the Federal Reserve: Kevin Hassett & Sen. Mark Warner
Date: January 12, 2026
Hosts: Joe Kernen, Becky Quick, Andrew Ross Sorkin

Overview

This Squawk Pod episode centers on the unprecedented criminal investigation into Federal Reserve Chair Jay Powell, focusing on allegations of perjury about Fed headquarters renovations and the wider implications for Fed independence, monetary policy, and American governance. The podcast features in-depth discussions with National Economic Council Director Kevin Hassett, who is a leading candidate to succeed Powell, and Senator Mark Warner, who sits on the Senate Banking Committee tasked with confirming the next Fed Chair. Broader political themes—ranging from potential “lawfare” against government officials, to U.S. foreign interventions, to heated debates over immigration and economic policy—set the backdrop for urgent concerns about the rule of law and the politicization of key American institutions.

Key Discussion Points & Insights

1. The DOJ Investigation into Jay Powell

• Allegations: The Department of Justice has subpoenaed the Federal Reserve concerning Powell’s congressional testimony on cost overruns and possible "luxury items" in the HQ renovation.
• Political Context: President Trump has long been publicly critical of Powell and the perceived independence of the Fed.
• Key Details:
  • The case is being run out of the U.S. attorney’s office for D.C., headed by Trump ally Jeanine Pirro.
  • White House denies direct involvement, but suspicions abound regarding political motivation.
  • Source of Congressional referral: Rep. Anna Paulina Luna, who has publicly taken credit for referring Powell to DOJ (06:16).

Notable Quotes

• Becky Quick (03:55): "Powell said the investigation is just a pretext."
• Sen. Mark Warner (42:38): “Going after the independence of the Fed… good for the American economy? It’s not going to bring prices down. And does anybody believe that this is anything other than political retribution?”
• Kevin Hassett (01:33 | 27:00): “I respect the independence of the Fed and the independence of the Justice Department. And we’ll see how it goes.”
• Andrew Ross Sorkin (07:39): “Will he be able…any communications between the President…and the Attorney General on this?”

Timestamps:

• Discussion of grand jury subpoenas and political context: 02:39–04:50
• Debate over Powell’s congressional testimony and possible perjury: 05:25–07:03
• Public/White House reaction, quotes from Trump: 07:03–08:22
• Legal mechanics of indictment and Congress’ limited role: 08:56–09:51

2. Independence of the Federal Reserve and “Lawfare”

• Concerns: Multiple panelists and guests worry that this move constitutes an assault on the time-honored independence of U.S. monetary policy.
• “Lawfare” Theme: Discussion expands to broader concerns about using legal processes (or threats thereof) as political weapons—against presidents, advisors, Fed officials, etc.
• Dissent Within GOP: Noted that Republican Sen. Thom Tillis is refusing to confirm any new Fed chair until these issues are resolved (06:45).

Notable Quotes

• Andrew Ross Sorkin (16:10): “You have to at least raise the question about what’s happening.”
• Eamonn Javers (16:24): “You can throw around lawfare all you want, but in terms of what’s actually proceeded, you’re at zero still for who has actually been arrested under your lawfare scenario.”

Timestamps:

• "Lawfare" and independence of institutions: 13:49–17:09
• Reactions and market implications: 16:10–16:24

3. Next Fed Chair: Candidates, Politics, and Fed Policy

• Kevin Hassett’s Stance: Hassett, a main candidate for Fed Chair, respects the independence of both the DOJ and the Fed but emphasizes the need for introspection at the central bank regarding past inflation.
• Policy Debates:
  • Hassett and panelists discuss the Fed’s handling of inflation, rate-raising timing, and the implication that fiscal stimulus and external shocks played major roles.
  • Ongoing tension between Trump’s calls for lower interest rates versus critiques that Fed may not have raised rates soon enough post-COVID.

Notable Quotes

• Kevin Hassett (28:48): “We let inflation get out of control… The economy is booming right now because of Trump’s policies, not because of the Fed.”
• On his possible appointment: (35:00) “What really happens with my life here in the White House is I come in every day and I do my job… If my job changes, then I’ll start doing some other job.”

Timestamps:

• Kevin Hassett segment begin: 26:09
• Hassett on Fed independence and inquiry: 27:00–27:46
• Institutional critiques and inflation analysis: 28:07–29:28
• On personal career speculation: 35:00–35:20

4. Senator Mark Warner on Fed Independence, Venezuela, Immigration

• Fed Independence: Warner decries what he sees as political retribution against Powell and attacks on the Fed’s independence.
• Venezuelan Policy and U.S. Interventions: Warner lays out skepticism about long-term U.S. involvement off Venezuela’s coast, questions cost and strategy, discusses similar interventions (38:07–39:25).
• Immigration Enforcement: Warner charges that ICE enforcement under Trump has moved beyond targeting criminals, into sweeping up people “who have violated no laws at all,” citing data from Virginia ICE facilities (47:19–48:31).
• On Price Controls: Warner expresses skepticism about capping credit card interest rates and “arbitrary market restrictions,” but is open to targeted temporary helps (44:43–45:29).

Notable Quotes

• Mark Warner (42:13): “Investigation, fine. But he’s talking about an indictment. And Trump saying he didn’t know about this—two weeks ago he said Powell was going to get indicted. We saw it happen.”
• On ICE enforcement: (48:04) “75% of the people who’ve been picked up in Virginia by ICE… have violated no laws at all. That is not what the President said. We’re going to get the criminals off the street.”
• On border security: (49:30) “Do I think we ought to not have a fully open border? Absolutely.”

Timestamps:

• Warner on Fed independence and lawfare: 42:13–43:34
• Warner on Venezuela, foreign interventions and global policy: 38:07–41:26
• Immigration and ICE enforcement: 47:19–49:53

Notable Quotes & Memorable Moments

• Becky Quick (18:04): “A Federal Reserve official told me last night that Jay Powell is resolute and confident. That’s how they’re describing his state of mind… This confrontation is not going to end anytime soon with Powell capitulating here.”
• Eamonn Javers (11:51): "But you know what happens when you assume—makes an ass out of you and me."
• Sen. Mark Warner (49:53): “The idea that we’re going to send in these ICE agents… ICE used to take five to six months to get trained. They’ve now lowered the training period to 47 days. Why 47 days? Because Donald Trump’s the 47th president. Tell me that’s a rational approach.”
• Andrew Ross Sorkin (07:03, quoting Trump): “I don't know anything about it, but he's certainly not very good at the Fed and he’s not very good at building buildings.”

Important Segment Timestamps

• Critical rundown of Powell investigation & political context: 02:39–09:51
• Discussion of Fed independence, lawfare, and market reactions: 13:49–18:24
• Kevin Hassett on Fed, legal process, and macroeconomic outlook: 26:09–35:20
• Senator Warner on Fed, foreign policy, price controls, and immigration: 35:31–52:32

Tone and Style

The conversation remains intense and direct, with moments of levity and heated disagreement, especially between partisan perspectives. The hosts balance rapid-fire questioning and contextual insights with sharp interjections and editorial color from their guests.

Conclusion

This episode provides an illuminating, sometimes contentious, but always informative overview of a pivotal moment for the Fed and broader U.S. governance. The criminal probe into Jay Powell acts as a lightning rod for debates about law, politics, independence of economic institutions, and the proper boundaries between the White House and agencies. The interviews with Kevin Hassett and Mark Warner contextualize the day’s headlines within wider policy and philosophical battles currently playing out across government and industry.

For listeners wanting a snapshot of today’s top headlines and their far-reaching implications for the economy, law, and politics, this episode is essential.