Podcast Summary: The Rundown – DOJ Launches Criminal Investigation Against the Fed, Trump Calls for 10% Interest Rate Cap on Credit Cards

Host: Zaid Admani
Date: January 12, 2026
Produced by: Public.com

Episode Overview

In this episode of The Rundown, host Zaid Admani covers major developments shaking up markets, particularly the Department of Justice’s (DOJ) criminal investigation into Federal Reserve Chair Jerome Powell and President Trump’s proposal to cap credit card interest rates at 10%. Additionally, the episode covers Google’s AI monetization strategy, a major airline acquisition, and surprising Golden Globes backlash. The tone is fast-paced and informative, mirroring the host’s accessible, insightful style.

1. Stock Market Snapshot & Investor Sentiment

[00:32 – 01:27]

• Bullish Start to 2026:
  • S&P 500 up 1.6% last week, hitting record highs.
  • Nasdaq up 1.9% — best week since November.
  • Investors increasingly confident about the economy; rally broadening beyond just tech.
  • Small caps shine: Russell 2000 up 6% this year, now at record highs.
  • “Whenever small caps start rallying, this usually a sign that investors are feeling more confident about the overall economy.” (Zaid Admani, 01:11)

2. DOJ Investigation Into Fed Chair Jerome Powell

[01:28 – 03:37]

• Breaking News:

  • Jerome Powell released a statement and video confirming DOJ’s criminal investigation regarding $2.5B renovation of Federal Reserve HQ.
  • Powell asserts investigation is "politically motivated," retaliating against his refusal to cut rates as aggressively as President Trump wants.
    • “Jerome Powell straight up said that this is a politically motivated investigation, that he's being targeted by the Trump administration because the Federal Reserve has refused to cut interest rates as aggressively as President Trump has publicly demanded.” (02:16)
  • Powell denies wrongdoing and intends to stay until term ends in May.

• Market Reaction:

  • Stocks down in pre-market; gold spikes to all-time highs at $4,600/oz.
  • “Every time Trump tries to attack the Fed's independence…investors get a little nervous.” (03:07)

• Context:

  • Emphasizes U.S. financial system relies on Fed independence from politics.
  • Reminder of Trump’s past threats to fire Powell in 2025.
  • Recommends listeners to check out his recent interview with Andrew Ross Sorkin on Fed independence and Trump’s economic influence. (03:22)

3. Google Monetizing AI Shopping Tools

[04:00 – 05:40]

• Major Announcement:

  • Google brings personalized ads to its AI shopping tools via Gemini.
  • Advertisers can show real-time exclusive offers, such as discounts or free shipping, when AI (Gemini) detects users close to purchase decisions.

• Host’s Perspective:

  • Sees AI-powered ads as a big revenue opportunity.
    • “It’s pretty obvious that every AI company, including Google, OpenAI and others, are going to have to embrace ads to further monetize.” (04:50)
  • Notes risk: excessive ads might reduce user trust in AI recommendations.
  • Uses Gemini/ChatGPT for shopping research and expects trend will continue.

• Partnerships:

  • Google teams with Walmart; soon, users can use Gemini to shop at Walmart and Sam’s Club.
  • Walmart also partners with OpenAI for instant checkout via ChatGPT.
  • Walmart stock up 2%, near all-time highs.
    • “Walmart as a retailer seems to be fully embracing AI to drive more sales.” (05:35)

4. Trump’s Call for a 10% Credit Card Interest Rate Cap

[05:41 – 07:21]

• What Happened:

  • President Trump, via Truth Social, demands nationwide 10% cap on credit card interest rates, criticizing banks for charging 20-30% on balances.
  • Says cap would begin January 20, but congressional approval is actually required.

• Economic and Political Backdrop:

  • U.S. household debt hit record $18.5 trillion; credit card balances a major piece.
  • Affordability and debt are key election issues.

• Market Impact:

  • Bank and credit card stocks drop: American Express down 4%, Capital One down 8%.
  • “Investors are freaking out right now.” (07:08)
  • Opponents warn a cap could cut off millions from credit if banks tighten lending.

• Winners:

  • “Buy Now, Pay Later” firms (Affirm, Klarna) rise as consumers could turn to alternatives if traditional credit tightens.

• Host’s Take:

  • “I don't think that a 10% interest rate cap is going to be implemented starting January 20th.” (07:20)

5. Noteworthy Stock Movers

[07:22 – 08:11]

• Sun Country Airlines Soars:

  • Allegiant Air to acquire Sun Country for $1.5 billion (cash and stock).
  • New entity to expand into underserved markets and strengthen loyalty programs.
  • Sun Country shares up ~15%.

• Abercrombie & Fitch Tumbles:

  • Guides lower for Q4/full-year sales, suggesting weak holiday shopping season.
  • Shares down 17% pre-market.

6. Cultural Moment: Golden Globes & Prediction Markets Backlash

[08:12 – 09:40]

• Golden Globes & Polymarket:

  • Awards show integrated live prediction market odds (via Polymarket) during broadcast, prompting "cringe and dystopian" backlash online.
    • “Viewers were calling this integration cringe and dystopian and a new low for award shows.” (09:08)
  • Host notes rise of prediction markets across media and concern about blurring lines between gambling and investing.
  • “Prediction markets are interesting, but…I think people are getting tired of these prediction markets being everywhere now.” (09:28)
  • Suspects backlash will grow, but trend is unlikely to slow.

• Further Listening:

  • Listeners invited to check out Andrew Ross Sorkin interview for more on prediction markets and their CNBC partnership.

7. Notable Quotes

• On Fed Independence:

  • “Independence from the Fed is a cornerstone of the US financial system. Investors trust that interest rates decisions are based on data and not politics.” (03:00)

• On AI Monetization:

  • “Every AI company…is going to have to embrace ads to further monetize…and the shopping and e-commerce space seems to be the low-hanging fruit.” (04:50)

• On Market Reaction to Political Shocks:

  • “Stocks are down in pre market trading while gold is moving higher and hit all time highs of $4,600 an ounce. So we'll see how this plays out.” (03:13)

• On Trump’s Credit Cap Proposal:

  • “Investors are freaking out right now. Shares of American Express are down 4%. Capital One is down more than 8%.” (07:08)
  • “But I don't think that a 10% interest rate cap is going to be implemented starting January 20th.” (07:20)

8. Additional Insights & Listener Engagement

• Host Zaid Admani shared personal context (recording from Costa Rica), emphasizing ongoing market coverage.
• Invites feedback on the prediction market debate and plugs the recent interview with Andrew Ross Sorkin for added depth on show topics.
• Promotes engagement via Spotify polls and comments.

Highlight Timestamps

• Fed Investigation & Market Reaction: [01:28 – 03:37]
• Google’s AI Shopping Tool Ads: [04:00 – 05:40]
• Trump’s Credit Cap Proposal: [05:41 – 07:21]
• Sun Country / Allegiant Merger: [07:22 – 07:56]
• Golden Globes & Prediction Markets: [08:12 – 09:40]

This summary condenses the most important developments and commentary from today’s episode, with direct quotes and timestamps for key segments—giving you a clear sense of why these stories matter to investors and the broader public.