Fox Business host dismayed by Trump's threat against Federal Reserve chair: “Unprecedented ... A difficult day, I think”
Fox Business guest: Indicting Jerome Powell over building renovation costs is “arguably probably a pretext for getting him out” due to a clash over interest rates
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From the January 12, 2026, edition of Fox Business' Varney & Co.
STUART VARNEY (HOST): And let's have a look at the news. Federal Reserve Chair Jerome Powell announced late Sunday he is being investigated by the Justice Department over his testimony last year regarding the Fed building's renovation project. In a video statement, Powell says the central bank received "grand jury subpoenas, threatening a criminal indictment." He said "the threat of criminal charges is a consequence of the [Fed] setting interest rates based on [their] best assessment of what will serve the public, rather than the preferences of the president." This is unprecedented, the president of the United States, in an open fight with the chair of the Federal Reserve. Adam Johnson with me this morning.
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VARNEY: A difficult day, I think. Does a renovation project warrant criminal charges? What do you make of this?
ADAM JOHNSON (BULLSEYE AMERICAN INGENUITY FUND): No, it doesn't. And in simple terms, and I am simplifying here, you could argue that the president runs the country, and the chairman of the Federal Reserve runs the economy. Right? And you want to see them aligned. No one wants to see mom and dad fighting, and right now, they are fighting. And it's over — in theory, as Jerome Powell said over the weekend — he said, in theory, it's over this runaway building project. That's arguably probably a pretext for getting him out. President Trump wants lower interest rates, that helps with the affordability issue, and right now the chairman of the Federal Reserve doesn't want to lower interest rates.