Episode summary
Trump Defends DOJ's Powell Probe; Iran Death Toll Jumps | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 15 min
Summary
President Trump defended the Justice Department’s probe into Federal Reserve Chair Jerome Powell and signaled he still plans to name Powell’s replacement within the next few weeks. The host and an analyst said the move has triggered broad backlash from Republicans, Democrats, business leaders, and central bankers, with the analyst arguing the Fed was designed to be insulated from presidential pressure. Jamie Dimon’s criticism was brushed aside by Trump, while former Fed chairs and former Treasury secretaries warned the investigation has no place in the United States and looks more like behavior seen in emerging markets.
The discussion also focused on the legal and market consequences if the administration keeps pushing. The analyst said Republican senators could block Fed nominations, and that the coming Supreme Court fight over Fed Governor Lisa Cook could further test the central bank’s guardrails. He added that the bond market is the key check to watch: if investors conclude the probe threatens monetary-policy independence, yields could rise and complicate Trump’s effort to lower mortgage rates and improve housing affordability.
The show also covered Trump’s escalating rhetoric on Iran, where activist groups said more than 2,500 people have been killed in protests. Other headlines included Greenland rejecting U.S. control, new pressure on sanctuary cities, Obamacare enrollment running below last year, record highs in metals, Netflix revising its Warner Bros. Discovery bid, and Saks Global filing for bankruptcy.
Key takeaways
- The host said Trump will announce his Fed chair pick within “the next few weeks,” even as backlash to the Powell probe intensifies.
- An analyst argued the Fed’s independence is under direct stress because Congress can block Trump’s nominees and the Supreme Court will soon hear the Lisa Cook case.
- The analyst said the bond market is the real warning sign: if yields rise, Trump’s mortgage-rate and housing-affordability goals get harder to achieve.
- Trump also escalated pressure on Iran, with activist groups reporting 2,571 deaths in protests as of Wednesday.
- Gold, silver, copper, and tin all hit record highs as geopolitical tensions, possible Fed cuts, and stronger Chinese sentiment lifted commodities.
Notable quotes
“He's billions of dollars over budget, so he either is incompetent or he's crooked”
“Three former heads of the Federal Reserve and four former Treasury Secretaries in both Republican and Democratic administrations issued a statement saying this type of investigation has quote no place in the United States”
“the Fed was designed to be independent. those guard rails, those checks are now going to be tested”
“There's no other way to view that other than an assault on the independence of a central bank”
“If investors start focusing on a genuine threat to the independence of the central bank and the integrity of US monetary policy, that's going to change in a hurry”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. — Good morning. I'm Nathan Hager. — And I'm Karen Moscow. Here are the stories we're following today. — Karen, we begin this morning with President Trump's attacks on Federal Reserve Chairman Jerome Powell. The president is not letting up despite push back from Republicans, Democrats, business leaders, and central bankers around the world. Let's get the update this morning from Bloomberg's John Tucker. John, good morning.
Yeah, good morning, Nathan. President Trump had this to say about Pal as he left the White House yesterday. — He's billions of dollars over budget, so he either is incompetent or he's crooked. I don't know what he is, but he does a certainly doesn't do a very good job.
And Trump doesn't seem too concerned with push back from lawmakers like Republican Tom Tillis, who vowed to oppose any Trump nominees to the Fed after the central bank was subpoenaed. Well, that's why Tom's not going to be a senator any longer, I guess, right? But what do you think?
But I like Tom Jones. He's a nice guy. But look, he's not going to be a senator any longer because of views like that.
Trump said he would announce his nomination to replace Powell within the next few weeks despite the backlash. The president also dismissed Jaime Diamond's criticism over the Justice Department probe into the Fed. He says the CEO of JP Morgan Chase is wrong to suggest he's attacking Fed independence.
Well, this all comes as the blowback gets more intense. Three former heads of the Federal Reserve and four former Treasury Secretaries in both Republican and Democratic administrations issued a statement saying this type of investigation has quote no place in the United States and is more characteristic of emerging markets with weak institutions.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- fed independence probe
- powell replacement
- iran protests death toll
- arctic negotiations
- nato alliance tensions
Companies and tickers mentioned
- JPM
- JPMorgan Chase & Co.
- Human Rights Activists News Agency
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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