Episode summary
Instant Reaction: Judge Rejects Subpoenas of Fed in Powell Case, DOJ to Appeal | Bloomberg...
Bloomberg Daybreak: US Edition
· · 25 min · Hosts: Carol Massar, Tim Stenovec · Guests: June Grasso, Michael McKee, Tim O'Brien
Summary
A federal judge rejected subpoenas targeting the Federal Reserve in the inquiry tied to Jerome Powell, saying the government offered no evidence to justify them and that the effort reflected an improper motive of retaliation over policy disputes. The ruling immediately complicated the Justice Department’s push, while US attorney Jeanine Pirro said the office would appeal and pressed ahead with the investigation.
The discussion focused on how the case now moves through appeals and what that means for Kevin Warsh’s path to being confirmed as Powell’s successor. The guests argued that even if the legal fight continues, Powell can remain in place for now, and that the Fed’s structure gives him room to stay on as chair until a successor is confirmed. They also said the case is unusually weak if it rests on alleged misstatements rather than a clear crime.
Beyond the court fight, the conversation turned to the larger question of planning and discipline inside the Trump administration. Tim O’Brien argued that the episode reflects chaos more than strategy, while Michael McKee said markets still broadly trust the Fed’s independence even as the political confrontation drags on.
Key takeaways
- June Grasso said Judge James Boasberg found no evidence of a Fed crime and viewed the subpoenas as retaliatory and unreasonable.
- Michael McKee said Powell can stay in place as chair unless he resigns or a successor is confirmed, so the legal fight does not force an immediate change.
- Tim O’Brien argued the episode shows “chaos” more than strategy, saying effective government action requires planning and communication.
- The guests said Pirro’s appeal could delay Kevin Warsh’s confirmation for months, making the succession fight much slower than the White House may want.
- Michael McKee said markets still believe in Fed independence, even if the confrontation tests its credibility.
Notable quotes
“They've presented no evidence. On the other side, there's a mountain of evidence that this is about retribution against Powell by Trump”
“this was unreasonable and probably oppressive”
“the Fed had always taken the position there was no crime here”
“what you have now is essentially an apparatus around him that's enabling but anyone who talks to people in the White House or reports on it describes it as essentially a tornado of of different different goals and poor communication”
“I think that this is an attempt to impose a rational structure on what's an inherently irrational process”
How the episode opens
Every small business owner has that one moment that could have broken them, but remarkably it didn't. Hi, I'm Ben Walter, CEO of Chase for Business. And on season 3 of The Unshakables, my co-host, Kathleen Griffith, and I are bringing you more incredible stories of overcoming the impossible.
We're really proud to share that The Unshakables is nominated for best branded podcast at the 2026 iHeart podcast Awards. Listen to the unshakables wherever you get your podcasts and learn more at chase.com/mpodcast. JP Morgan Chase Bank and a member FDIC copyright 2026 JP Morgan Chasing Company.
Hello. Hello. I'm Malcolm Gladwell, host of Smart Talks with IBM.
I recently spoke with IBM's new director of research, Jake Gambetta. We discussed his vision for the future of quantum computing. At IBM research, what we always do is answer what is the future of computing?
Whether it's coming up with new algorithms, coming up with better AI, coming up with quantum or coming up with just how do different accelerators go together. It's our DNA to answer the question of what is the future?
Isn't it a perfect problem for IBM? Because you kind of need to have a legacy of building stuff. — Yes. Building actual physical machines. — Yeah. It's why I came to IBM. I wanted the experience, the culture of building hard things that others have not done before.
Mhm. Where do you imagine we are in the timeline of this technology? There will come a point when it will mature, right? — Yeah. — My cell phone is is a mature technology at this point. How far are we from that point with quantum?
By 2029, we'll build the first fault tolerant quantum computer. That is one that can run a very very large large problem.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- fed subpoenas
- powell case
- doj appeal
- kevin warsh confirmation
- court ruling
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Bloomberg Daybreak: US Edition, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
