The Dispatch Podcast: Investigating Jerome Powell

Date: January 13, 2026
Host: Steve Hayes
Panel: James Sutton, John McCormick, Michael Warren

Episode Overview

This week's Dispatch Podcast roundtable dives into the seismic news of a Department of Justice investigation into Federal Reserve Chairman Jerome Powell. Steve Hayes and Dispatch colleagues dissect the political machinations behind the probe, branch into wider analysis of America's current political climate, review the aftermath of the Minnesota shooting, explore the ongoing Iran protests, and even debate the fate of college football’s Big Ten. The podcast closes with a discussion of the new Dispatch Culture newsletter.

Main Segments & Key Discussion Points

1. The Federal Reserve, Jerome Powell, and DOJ Investigation

(04:21–23:27)

• Context: DOJ issued grand jury subpoenas tied to Powell’s congressional testimony regarding renovation costs at the Federal Reserve. The administration cites discrepancies between Powell’s Senate Banking Committee testimony (June 2025) and final project plans.
• Powell’s Response: Powell released a public statement, asserting independence and warning against political pressure.
• Political Backdrop: The panel argues the investigation is a clear extension of President Trump’s long-standing frustration with Powell for refusing to lower interest rates—a dispute Trump has aired publicly.
• Quote [Michael Warren, 07:33]:

  “We have this grand jury subpoena, this potential indictment… it all smells a little fishy. …A Republican member of the Senate Banking Committee, Thom Tillis, essentially saying, ‘this stinks. I don’t like it.’”

• Thom Tillis Holds Up Fed Nominations:
  ([13:25] Steve Hayes reading Tillis)

  “If there were any remaining doubt whether advisers within the Trump administration are actively pushing to end the independence of the Federal Reserve, there should now be none.”

• Panel Verdict:
  The group calls the probe “authoritarian and thuggish,” suggesting it’s more about silencing Powell than addressing any real misdeeds.

Notable Moment

• Quote [Steve Hayes, 20:52]:

  "I think this is absurd. ...This is just one in a number of things the President has done where he's just going after his political enemies."

2. The Political Calculus: Will Republicans Rebuke Trump?

(13:45–23:27)

• Skepticism on GOP Courage:
  Despite media speculation, panelists are doubtful that most congressional Republicans will take meaningful action to defend Powell or the Fed’s independence, outside of a few like retiring senator Tillis.
• Structural Pressures:
  Panelists say only those insulated from political risk (retirees, appointees with fixed terms) challenge Trump.
• Quote [James Sutton, 12:04]:

  "The only people we can see who consistently are willing to defy the president's wishes in public life are people who aren't accountable to Republican voters."

3. Economic Policy, Tariffs, and GOP Messaging

(16:32–23:27)

• Republican Doublethink:
  Lawmakers privately lament Trump’s economic policies but publicly defer, citing fear of the party base.
• Tariffs as a Blind Spot:
  John McCormick criticizes Republicans for ignoring the negative economic impact of tariffs, even as they rail against inflation.
• Quote [John McCormick, 17:16]:

  “Republicans are just whistling past the graveyard on their biggest vulnerability, which is tariffs. It’s a $3 trillion tax... everyone feels it.”

4. Trump’s Political Strategy: Manufacturing Scapegoats

(23:27–26:33)

• Hayes' Analysis:
  Trump’s genius lies in redirecting voter anger from economic realities to villainized figures—first ‘elite bankers’ like Powell, then the ‘deep state,’ et al.

• Counterpoint:
  Creating villains may energize the base, but can't paper over inflation for most Americans.

• Quote [Steve Hayes, 22:20]:

  "We're just watching Trump create villains that he can then turn to blame for the economic challenges facing the country."

5. Minnesota Shooting, ICE Tactics, and Immigration Backlash

(31:14–40:37)

• Political Fallout:
  Coverage focuses on the ICE shooting of Renee Goode in Minnesota, sparking sharp divides.
• Approval Slippage:
  Trump’s polling on immigration falls, with 80% (down from 88%) of Republicans approving, and greater declines among independents.
• Why the Drop?
  The proliferation of aggressive ICE videos, especially involving citizens, disturbs even parts of Trump’s base. Hayes notes, “Even if it doesn't change how people feel about immigration...in the specific, it's having a negative effect and that's hurting Donald Trump.” ([Mike Warren, 34:27])
• Cultural Contradiction:
  Americans want tough immigration enforcement, but recoil at harsh images of force.

6. Iran Protests & American Response

(40:37–57:33)

• Nature of the Protests:
  James Sutton outlines why current Iranian protests feel different: regime’s weakened legitimacy after military setbacks, generational disillusionment with reformist politics, and more explicit calls for regime change.
  • "Radicalization of protest movements' aims for 15 years. That's basically as radical as it's going to get now." ([James Sutton, 43:02])
• Cautionary Notes:
  Real regime change likely requires elite defection (military or otherwise)—not yet observed.
• Muted U.S. Political Response:
  Panel notes less outcry from U.S. politicians likely due to domestic news overload and skepticism after many previous protest cycles.
• Trump’s Surprising Threat:
  Trump threatened military action if the regime kills protesters—shocking to the panel for its humanitarian framing, a departure from his norm.
  • “If Iran shoots and violently kills peaceful protesters...the United States will come to their rescue. We are locked and loaded and ready to go.” ([John McCormick quoting Trump, 50:54])
• Will US Act?
  Lloyd Warren warns it’s unclear whether Trump’s red line means action, since “none of the normal rules apply” with Trump’s credibility.

7. Not Worth Your Time & College Football

(57:33–67:26)

• College Football Playoff:
  The host and panelists dissect playoff outcomes, with Indiana and Miami set for the national championship.
• Big Ten Debate:
  James Sutton and Michael Warren bemoan the demise of traditional conferences and the impact of money and the transfer portal.
• Quote [James Sutton, 60:14]:

  “For me, it has the same legitimacy as the Iranian regime. I just want the winner of the conference that killed the Pac-10 playing the Pac-10 in the Rose Bowl.”

8. Dispatch Culture Newsletter Launch

(68:15–73:05)

• Valerie Pavalonis Interview:
  Hayes is joined by Ideas Editor Valerie Pavalonis to introduce Dispatch Culture, a new newsletter celebrating American culture, art, and artifacts.
  • Content Includes: Essays on Americana, arts recommendations, coverage of both high and pop culture, and member-submitted art. Pavalonis highlights both contemporary reviews and classics (e.g., Hunter S. Thompson, The Man Who Shot Liberty Valance).
• Approach:

  “We try not to focus too much on pop culture, honestly, because those things come and go very quickly. ...All of our cultural coverage does have some staying power.” ([Valerie Pavalonis, 72:10])

• Features: Members can submit favorite works of art for newsletter consideration.

Notable Quotes & Memorable Moments

• On Fed Investigation:

  • Steve Hayes, 20:52: “This is just one in a number of things the President has done where he's just going after his political enemies.”
  • Thom Tillis statement, 13:25: "It is the independence and credibility of the Department of Justice that are in question. I will oppose the confirmation of any nominee for the Fed... until this legal matter is fully resolved."

• On Republican Calculus:

  • James Sutton, 12:04: “The only people willing to defy the president... are people who aren't accountable to Republican voters.”

• On Economic Realities:

  • John McCormick, 17:16: “Republicans are... whistling past the graveyard on their biggest vulnerability, which is tariffs.”

• On Trump’s Strategy:

  • Steve Hayes, 22:20: "...Trump create[s] villains that he can then turn to blame for the economic challenges facing the country."

• On ICE and Police Power:

  • Mike Warren, 34:27: “The effect of all these videos is to give a general sense that... it’s a little foreign, a little alien, to see this kind of force of law enforcement... marching through American cities.”

• On Iran Protests:

  • James Sutton, 43:02: “...the big difference... there’s been an increasing radicalization of protest movements, aims for 15 years. That’s as radical as it’s going to get now.”
  • John McCormick, 50:54 (Trump quoting): “If Iran shoots and violently kills peaceful protesters...the United States will come to their rescue. We are locked and loaded and ready to go.”

• On College Football:

  • James Sutton, 60:14: “For me, it has the same legitimacy as the Iranian regime. I just want the winner... in the Rose Bowl and that is all I care about.”

• On Dispatch Culture:

  • Valerie Pavalonis, 72:10: “We try not to focus too much on pop culture, honestly, because those things come and go very quickly. ...All of our cultural coverage does have some staying power.”

Timestamps for Key Segments

• [04:21] – Details of DOJ/Fed Investigation and political context
• [13:25] – Thom Tillis’s public statement & broader GOP reaction
• [17:16] – Discussion on tariffs and GOP’s economic dilemmas
• [22:20] – Trump’s political scapegoat strategy
• [31:14] – Minnesota shooting, ICE tactics, and immigration polling
• [40:37] – Comparison of ICE tactics to Iran’s crackdown; Iran protests segment
• [50:54] – Trump’s “locked and loaded” comment on Iran
• [60:14] – College Football Playoff: Big Ten dominance debate
• [68:15] – Launch of Dispatch Culture newsletter

Conclusion

The Dispatch Podcast offers a deeply skeptical, policy-focused take on recent political and cultural turmoil, explicitly condemning what they see as the politicization of the DOJ and Federal Reserve, and warning about the erosion of American institutional norms. The team contextualizes each headline with both insight and wit, delivering nuanced argument and skepticism toward political talking points—sometimes with sharp humor, especially when shifting to college football.
For listeners concerned about the integrity of U.S. institutions, the fate of American conservatism, and the complexity of voter psychology, this episode is an incisive guide through the chaos of early 2026.