“Donald Trump has played down the chances he will nominate Kevin Hassett as the next Federal Reserve chair, dealing a blow to the National Economic Council director, who has been considered the frontrunner,” the Financial Times reports.

“The president said on Friday that the prospect of Hassett leaving his current role was a ‘serious concern,’ sending the odds of his main rival Kevin Warsh taking the Fed role surging on betting markets.”

Said Trump: “I see Kevin’s in the audience and I just want to thank you, you were fantastic on television today. I actually want to keep you where you are if you want to know the truth.”

“The criminal investigation into Federal Reserve Chair Jerome Powell threatens to upend the contest over whom President Trump will choose to succeed him as it enters its final stretch,” the Wall Street Journal reports.

“The episode is creating new obstacles on Capitol Hill and raising hard questions about whether any nominee can be seen as independent—tension that was always present but is now much harder to ignore. Trump has made clear he prizes loyalty in his pick, but the Justice Department probe—which Powell said was part of a pressure campaign to get the Fed to lower interest rates—threatens to make that quality a liability.”

“Jeanine Pirro didn’t seek sign-off from her bosses at the Justice Department before subpoenaing the Federal Reserve and has no plans to back down from an investigation into Chairman Jerome Powell,” Bloomberg reports.

“Inflation ended the year on a subdued note, as the 2025 tariff barrage worked its way through to sticker prices,” the New York Times reports.

“Consumer prices were 2.7 percent higher than a year ago… or 2.6 percent when stripping out volatile food and energy prices.”

“The report is the last of its kind before the Federal Reserve meets again in two weeks.”

“Threats to Fed independence, a $200 billion mortgage bond purchase, a possible cap on credit-card interest rates and more didn’t stop stocks from hitting records,” Axios reports.

“The fire hose of policy from Washington hasn’t shaken investors, yet, who are happy to keep their eyes on the AI prize… While the Trump administration is ratcheting up policy announcements that could impact markets and the economy, investors are still struggling to look away from the AI trade.”

Playbook: “The Trump administration’s decision to launch a criminal investigation into Fed Chair Jerome Powell has overshadowed all economic discussion for the past 36 hours, and the row shows little sign of abating. The whole thing is proving a disaster for the White House — to the extent that you have to wonder how quickly this probe might get wrapped up.”

Politico: “The inquiry, which blindsided many White House aides, is renewing fears over the future of the central bank’s independence and offering fresh fodder for concerned Senate Republicans, many of whom will be needed to confirm the next Fed chair.”

Senate Majority Leader John Thune said that the Justice Department’s targeting of Federal Reserve Chair Jay Powell “better be real” and “better be serious,” raising concerns about “political interference” in monetary policy, Punchbowl News reports.

Thune is the highest-ranking Republican to raise concerns about the unprecedented criminal investigation of the Fed chair.

Financial Times: Top Republicans denounce justice department’s criminal probe into Fed chair Jay Powell.

“A perturbed Treasury Secretary Scott Bessent told President Trump late Sunday that the federal investigation into the Federal Reserve chair ‘made a mess’ and could be bad for financial markets,” Axios reports.

“Sunday night, Trump appeared to distance himself from the investigation of Fed chair Jerome Powell for allegedly misrepresenting the costs of renovations to the Federal Reserve’s headquarters in DC.”

“The Trump administration’s decision to open a criminal investigation into Federal Reserve Chair Jay Powell is backfiring,” Punchbowl News reports.

“GOP lawmakers and former Federal Reserve officials are rallying to show support for Powell and the Fed’s role as an independent regulator of the U.S. economy. And it’s not just rank-and-file Republicans coming to Powell’s defense.”

“House Financial Services Committee Chair French Hill (R-AR), whose panel oversees the Federal Reserve and Wall Street, said he believes that the criminal charges are ‘an unnecessary distraction’ when policy makers should be focused on ‘the nation’s economy.'”

Politico: “The fresh-out-of-a-job former New York City mayor blew back into his hometown Monday in between jaunts to Dubai, the Democratic Republic of Congo and Dallas to promote his new crypto coin with a cause.”

“Proceeds from the $NYC Token will go toward combating antisemitism and anti-Americanism, he said.”

“Jerome Powell wanted to avoid a fight. That had long been his approach to handling President Trump and his relentless attacks on the Federal Reserve, which in his second term had taken on heightened intensity,” the New York Times reports.

“Between an executive order wresting more control over the Fed’s oversight of Wall Street to Mr. Trump’s attempt to oust a sitting member of the policy-setting board of governors, the Fed had stuck to a time-tested strategy: Avoid provoking the president. At times, that meant bending to meet his demands in areas like climate change and bank regulation. But Mr. Powell, the Fed chair, drew the line when it came to protecting the central bank’s autonomy to set interest rates.”

“A criminal investigation into whether Mr. Powell lied to Congress… has prompted the central bank to cast aside that approach and instead fight, the outcome of which could determine whether the Fed remains an independent entity.”

Washington Post: Former Fed chiefs rebuke Justice Department probe into Fed chair.

“A growing number of Republicans on Capitol Hill are expressing unease with the Justice Department’s move to investigate Federal Reserve Chair Jerome Powell, a sign that the probe could become a major inflection point over GOP lawmakers’ concerns about central bank independence,” Politico reports.

The Guardian: Republican senator vows to block all Fed nominations after DOJ investigates Powell.

“President Donald Trump denied having any knowledge of the Justice Department’s investigation into the Federal Reserve after the agency subpoenaed the central bank Friday,” NBC News reports.

Said Trump: “I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings.”

“The Trump administration’s decision to open a criminal investigation into Federal Reserve Chair Jay Powell has set off a political firestorm on Capitol Hill and across official Washington,” Punchbowl News reports.

“This is a long-feared and unwelcome chapter in the battle between President Donald Trump and ‘independent’ federal agencies.”

“Trump’s legal push will force Republicans to choose between maintaining the independence of the Fed — a key tenet for both parties — and a president who argues that high interest rates are hampering the U.S. economy.”

“The U.S. attorney’s office in the District of Columbia has opened a criminal investigation into Jerome Powell, the Federal Reserve chair, over the central bank’s renovation of its Washington headquarters and whether Mr. Powell lied to Congress about the scope of the project,” the New York Times reports.

“The inquiry, which includes an analysis of Mr. Powell’s public statements and an examination of spending records, was approved in November by Jeanine Pirro…”

“The investigation represents the opening of a major new legal front against Mr. Powell, whom Mr. Trump has continually attacked for resisting his demands to slash interest rates significantly.“

Wall Street Journal: Fed received Justice Department subpoena threatening criminal indictment.

Wall Street Journal: “After the brazen capture of Venezuelan strongman Nicolás Maduro, investors are racing to capitalize on President Trump’s ambitions to dominate the Western Hemisphere.”

“Hedge funds and other investment firms, already boosted by a sharp rally in Venezuelan debt, are mapping out trips to Caracas to scope out on-the-ground opportunities. Some are investigating niche instruments, like arbitration claims and unpaid state debts.”

“Others are eyeing debt in Colombia and Cuba, while shares of a tiny bank in Greenland—another territory in Trump’s sights—have surged recently as the U.S. president pursues his own spin on the Monroe Doctrine that saw 19th-century America claim half of the globe as its sphere of influence.”

“President Donald Trump has called on credit card companies to cap interest rates at 10 percent for a year, effective from Jan. 20, without specifying how the proposal could be implemented or enforced,” the Washington Post reports.

Associated Press: Americans would save $100B if credit card rates were capped as Trump proposed.