Kevin Warsh, President Donald Trump’s “central casting” pick for the Federal Reserve, stepped into the spotlight on Friday, officially taking the helm as chairman of the Federal Reserve.
Warsh, who replaces Jerome Powell as chairman, was sworn in in the East Room of the White House in a ceremony hosted by President Trump. 
“I expect he’ll go down as one of the truly great chairmen of the Federal Reserve,” Trump <a href="https://www.youtube.com/watch?v=mCokNpi_Tow">said</a>. “Unfortunately, in the eyes of many, the Fed lost its way in recent years. It became distracted by concerns far removed from its core mission and mandate, drifting into matters such as climate policy and DEI initiatives … Kevin has spoken about a need to return to the Fed’s core mandate.” 
Critics of Warsh, such as leftist Senator Elizabeth Warren (D-MA), argue that he will not be able to run the Fed independent of President Trump. 
“This guy is not independent,” said Warren. The Massachusetts senator even went as far as calling him Trump’s “sock puppet” while she grilled him during his confirmation hearing. 
At Warsh’s ceremony, Trump said, “I want Kevin to be totally independent. I want him to be independent and just do a great job. Don’t look at me, don’t look at anybody. Just do your own thing and do a great job.” 
Later in the speech, Trump hinted that Warsh would lower interest rates. 
“Thankfully, unlike some of his predecessors, Kevin understands that when the economy is booming&#8230; that’s a good thing. We don’t have to go crazy, just let it boom.” During Powell’s tenure, Trump argued the economy was strong and that Powell should lower interest rates. 
Warsh replaced Powell, who was also nominated by Trump eight years ago. Warsh takes over a Federal Reserve facing competing pressures. Inflation remains elevated amid the war with Iran, while the Trump administration continues to push for lower interest rates. After April’s hotter-than-expected inflation report, expectations for a rate cut in 2026 faded.
Warsh has suggested he will run a data-dependent Fed that will focus on its core mandate of keeping inflation at 2% while maximizing employment. During his confirmation process, Warsh said he intends to shrink the Federal Reserve’s balance sheet, which still holds more than $6 trillion in Treasury bonds and mortgage-backed securities. 
Trump nominated Warsh in January, but he was not confirmed by the Senate until May in the most partisan Fed chair confirmation vote in history. Senator John Fetterman (D-PA) was the only senator to cross party lines in a 54-45 vote. Warsh&#8217;s confirmation was delayed by Senator Thom Tillis (R-NC), who <a href="https://www.dailywire.com/news/senate-confirms-kevin-warsh-as-fed-chair-in-big-win-for-trump">blocked</a> Warsh’s process until the Department of Justice dropped its criminal investigation into Powell. 
The Department of Justice launched a criminal investigation over Powell&#8217;s Congressional testimony on the Federal Reserve&#8217;s $2.5 billion renovations. 
In 2006, Warsh <a href="https://www.dailywire.com/news/who-is-kevin-warsh-meet-president-trumps-pick-to-chair-the-federal-reserve">became</a> the youngest appointed to the Fed’s Board of Governors. He emerged as a key figure during the 2008 financial crisis, helping coordinate the Federal Reserve’s response as markets spiraled. He also played a role in the government rescue of AIG and in the emergency negotiations that led JPMorgan Chase to acquire Bear Stearns. After leaving the Fed in 2011, Warsh joined the board of UPS and became a distinguished visiting fellow in economics at Stanford University’s Hoover Institution.

TOPSHOT-US-POLITICS-ECONOMY-TRUMP

Trump’s New Fed Boss Officially Takes Over

Donald Trump

Federal Reserve

Jerome Powell

Kevin Warsh

The Senate confirmed Kevin Warsh as chairman of the Federal Reserve on Wednesday in a 54-45 vote. Warsh will officially take over the position on Friday after Jerome Powell&#8217;s term as Fed chair concludes. 
The confirmation comes after Powell has faced months of pressure from President Donald Trump, as Powell has been hesitant to lower interest rates. Democratic Pennsylvania Senator John Fetterman was the only senator to cross party lines and vote for President Trump’s pick to lead the central bank.
While Warsh takes over as Fed chair, Powell will remain on the board as a governor. Powell&#8217;s term as Fed governor continues until 2028. 
Warsh&#8217;s confirmation didn&#8217;t come easy. Sen. Thom Tillis (R-NC) blocked Warsh&#8217;s path through the Senate Banking Committee for months, refusing to move any Fed nominees while the Department of Justice was criminally investigating Powell over the $2.5 billion renovation of the Federal Reserve building. The DOJ ultimately dropped the investigation, causing Tillis to drop his hold. 
Warsh takes the helm of the central bank after previously serving as a Fed governor from 2006 to 2011, an appointment made by President George W. Bush. He became the youngest Fed governor in history at 35 and became well known as an inflation hawk. 
&#8220;We have the largest, most robust economy in the world. We have the deepest, most liquid financial markets. And the dollar is the world’s reserve currency, bestowing key advantages upon us. But, none of this is our birthright. It must be earned, and re-earned,&#8221; Warsh <a href="https://www.federalreserve.gov/newsevents/speech/kevin20100628a.htm">said</a> in a 2010 speech. 
Warsh left the Fed in 2011 to join UPS&#8217;s board and take positions at the Hoover Institution and the Stanford Graduate School of Business.
Warsh inherits a Federal Reserve being pulled in multiple directions. President Trump continues to call for the Federal Reserve to cut interest rates, but inflation is still on the rise amid tensions with Iran. After April’s hotter-than-expected inflation report, chances of a rate cut in 2026 declined.
Warsh criticized the central bank’s hesitancy to cut rates, but many people still view him as a hawk on inflation. In December, the chief economist of Deutsche Bank <a href="https://www.investopedia.com/interest-rate-changes-could-be-on-the-way-under-kevin-warsh-trump-s-pick-for-fed-chair-11895919">said</a> that “although Warsh has argued for lower rates recently, we do not view him as structurally dovish.”
Warsh told Congress he plans on shrinking the Federal Reserve’s balance sheet, which holds more than $6 trillion in U.S. government bonds and mortgage-backed securities. Warsh argues that trimming the balance sheet will give the Fed room to lower interest rates.
He also plans to keep the Fed focused on its core mandate of maximizing employment and keeping inflation at 2%. Warsh says the central bank has drifted from that core mission and believes that decisions on which assets the central bank buys are better left to the Treasury Department.

Day Five Of The Spring Meetings Of The International Monetary Fund And World Bank

Senate Confirms Kevin Warsh As Fed Chair In Big Win For Trump

Inflation

Interest Rates

The Federal Reserve left interest rates unchanged on Wednesday as Jerome Powell presided over his last meeting as chairman.
The Fed held the rates steady at 3.5-3.75%, set after the last cut in December of 2025, in a split (8-4) vote — the highest dissent level since 1992. Amid the ongoing tensions in Iran, the Federal Reserve has been engaged in a difficult balancing act, facing threats from inflation — with oil prices up 70% on the year — and a weakening labor market, but the split vote suggests that at least a few members favor lowering rates.
The Wednesday Federal Reserve meeting was Powell’s last as Fed chair, as his term is set to conclude on May 15. Despite the fact that he was appointed by President Donald Trump in 2018, the two have had a rocky relationship. Trump often complained that Powell was not moving quickly enough to lower interest rates, nicknaming him “Too Late Powell.” Critics of Powell also argue that he was too late in raising interest rates during the Biden administration. 
“In retrospect, if you look at the data we now have, the Fed should have moved in the fall and maybe even the summer,” said Scott Lincicome, director of general economics and trade at the Cato Institute. 
Trump appointee Kevin Warsh is expected to move more quickly on interest rates, having criticized the Fed for reacting too slowly to inflation. At the same time, Warsh is likely to push for a reduction in the Federal Reserve’s balance sheet, which expanded rapidly when the Federal Reserve resumed quantitative easing (QE) in 2020 during the COVID pandemic. Quantitative easing injects liquidity into the market through the purchase of bonds — and Warsh argued that the adoption of similar contingency policies had continued long after the crisis had ended, contributing to rising inflation. 
Warsh&#8217;s appointment was initially held up due to a criminal investigation into the Federal Reserve&#8217;s $2.5 billion renovations under Powell. Although Senator Thom Tillis (R-NC) said he had full confidence in Warsh as a qualified nominee, he blocked the confirmation from proceeding because he disagreed with the DOJ&#8217;s decision to investigate Powell.
&#8220;Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable,&#8221; he said. Tillis chalked up the criminal allegations against Powell to a &#8220;young U.S. Attorney with a dream trying to get the president&#8217;s attention.&#8221;
Others, like Sen. Tim Scott (R-SC), echoed the sentiment, saying he thought Powell made a &#8220;gross error in judgment,&#8221; but did not believe Powell committed a crime.
The DOJ ultimately dropped the investigation against Powell, clearing the way for Warsh and ensuring that Wednesday&#8217;s meeting would be Powell&#8217;s last as Fed chair.

US-ECONOMY-POLITICS-FED-RATE-POWELL

The Fed’s Latest Move As Powell Prepares to Exit

The Trump administration has dropped its criminal investigation into Federal Reserve Chairman Jerome Powell, which will pave the way for Trump’s nominee Kevin Warsh to be confirmed as Powell’s successor.
The investigation centered on the cost of renovations at the Washington, D.C., offices of the Federal Reserve, and whether Powell lied to Congress about it. The project was expected to cost about $1.9 billion, but the number ended up closer to $2.5 billion, according to <a href="https://www.bloomberg.com/news/articles/2026-01-12/why-the-federal-reserve-s-renovation-costs-2-5-billion" target="_blank" rel="noopener">Bloomberg</a>.
“This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers,” Jeanine Pirro, United States Attorney for the District of Columbia, said in a statement posted to X on Friday morning.
She added that the inspector general is being asked to provide a report “in short order” to ensure that it will answering “the questions that led this office to issue subpoenas.”
“Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry. Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so,” she continued.
Critics of the investigation said that it risked the independence of the Federal Reserve—as Trump has been a staunch critic of Powell over interest rates. The president has repeatedly demanded the Federal Reserve to cut interest rates much more aggressively.
The decision to end the probe could satisfy an ultimatum from Sen. Thom Tillis (R-NC), a Trump critic, to move Warsh’s nomination out of the Senate Banking Committee.
“You have extraordinary credentials. They’re impeccable,” Tillis said at a committee hearing with Warsh earlier this week, according to <a href="https://thehill.com/business/5841124-tillis-doj-powell-probe-kevin-warsh/" target="_blank" rel="noopener">The Hill</a>.
Tillis bluntly stated over X that Warsh “is a great nominee to be Chairman of the Federal Reserve, and I look forward to supporting him out of committee once the DOJ drops their bogus investigation into Chairman Powell that threatens the independence of the Fed.”

President Trump Visits Federal Reserve

The Move That Just Cleared A Key Hurdle For Trump’s Plan To Change What You Pay

Executive

Jeanine Pirro

Politics

Trump Administration

U.S. Senate

President Trump declared on Tuesday that Kevin Warsh might have to sit next to him in the White House.
The president said on CNBC&#8217;s &#8220;Squawk Box&#8221; that if the $2.5 billion renovations at the Federal Reserve are not wrapped up by the time former Fed Governor Kevin Warsh is confirmed as the new chair, he might not have a place to work.
Anchor Joe Kernan <a href="https://www.cnbc.com/video/2026/04/21/president-trump-i-would-be-disappointed-if-kevin-warsh-doesnt-cut-rates-right-away.html">pushed back</a> on the president, saying, “I don’t know if Warsh will want to sit next to you after what happened to Jay Powell.”
Trump responded, “Maybe I’d like him next to me. Maybe it’s not a bad idea — Jerome Powell. I call him &#8216;too late.&#8217; He’s always too late,” the president said, referring to his infamous nickname for the current Fed Chair, Jerome “Too Late” Powell.
Trump revealed he would be “disappointed” if Warsh did not cut interest rates. “We should always have the lowest interest rate in the world,” he said. “When I was a young guy growing up, we always had the lowest interest rate worldwide.”
During Trump’s first term, the federal funds rate was at a near-zero range, beginning at 0.50%-0.75% and ultimately falling to 0.00%-0.25% during the COVID-19 pandemic. Rates peaked at 2.25-2.50% in the second year of his term, which is about half as high as the peak during the Biden administration.
Trump says his new Fed chair is straight out of “central casting” and that “he’s going to do a great job.” While the president seems confident Warsh will lower interest rates, other economists regard Warsh as a hawk. “Warsh’s long-running hawkish views should help to counteract concerns that he might morph into a full-blown Trump stooge,” <a href="https://www.wsj.com/livecoverage/stock-market-today-dow-sp-500-nasdaq-01-30-2026/card/would-warsh-be-a-hawk-or-dove-as-fed-chair--aCblKxbKeE8i0ZN2jla9">said</a> Deputy Chief Economist at Capital Economics Stephen Brown.
Warsh is set to testify before the Senate Banking Committee on Tuesday, which is considering his nomination. Sen. Thom Tillis (R-NC), a member of the Banking Committee, says he’ll block not just Warsh, but any nominee until the Department of Justice probe into Jerome Powell is resolved. Trump’s DOJ is currently investigating the Federal Reserve’s <a href="https://www.federalreserve.gov/faqs/building-project-faqs.htm">$2.5</a> billion renovations, which were approved by Powell.
When asked point-blank if he would turn over the investigation to the Senate Banking Committee in order to get Kevin Warsh approved for Fed Chair, Trump stood firm on letting the Department of Justice complete the investigation.

Trump Says New Fed Chair’s Office Might Be In the White House

The Federal Reserve got it wrong again.
By refusing to cut rates yesterday, the Fed showed that it is still fighting yesterday’s inflation while ignoring today’s economy. The Federal Open Market Committee left its target range unchanged at 3.5% to 3.75%. It also didn’t change the rate it pays on nearly $3 trillion of bank reserves, a disincentive for bank lending. Moreover, the difference between short-term interest rates on Treasury securities and long-term ones is ridiculously narrow. The one-month Treasury bill rate is about 3.7%. Given that the ten-year Treasury bond is yielding around 4.25%, that Treasury bill rate should be little more than 2 1/2%.
The Fed mistakenly believes prosperity causes inflation. By those misguided lights, our central bank should be cutting rates.
The labor market is plainly softer: February payrolls fell by 92,000. Fourth-quarter 2025 GDP was just revised down to a weak 0.7% annual rate. Those are not numbers that justify monetary paralysis. They are numbers that argue for relief.
Yet Jerome Powell persists in presenting this stance as prudence. It is not prudence. It is institutional vanity masquerading as caution. Powell said that the current stance of policy is “appropriate,” and he again leaned on vague uncertainty tied to developments in the Middle East. Central banking is supposed to be about weighing actual monetary conditions, not using every geopolitical tremor as an excuse for inaction. Monetary policy cannot prevent wars, but it can certainly make an already slowing economy weaker by keeping the price credit too high for too long. 
Worse, Powell’s comments about remaining in office as “chair pro tem” if no successor is confirmed were the most revealing part of the day. By saying he would stay on beyond the end of his current term if necessary, Powell projected exactly the wrong message: that the office belongs to him until the political system catches up. It does not. The Federal Reserve chairmanship is not a hereditary title, not a lifetime appointment, and certainly not a perch from which one signals permanence during a period of policy failure. Reuters reported <a href="https://www.reuters.com/business/feds-powell-says-hell-stay-fed-leader-until-successor-confirmed-2026-03-18/">yesterday</a> that Powell said he would remain as Fed leader until a successor is confirmed. That may be legally arguable. It is politically tone-deaf and economically reckless.
The real issue is not just style. It is substance. High rates are not costless. They punish homebuyers, freeze housing activity, discourage business expansion, and increase the financing burden across the economy. Powell himself acknowledged yesterday that housing remains weak and that job gains have remained low. January retail sales were down 0.2%, hires in the JOLTS report were stuck at 5.3 million, and quits remained subdued at 3.1 million. The Fed has an institutional bias against vigorous economic growth. But even by its perverted lights, those numbers don’t convey a booming economy screaming for restraint. That is a country telling the Fed, in plain English, that the price of borrowing money is too high.
This is the chronic disease of modern central banking: officials are always late. They were late to recognize inflation when easy money was flooding the system, and now they are late to recognize disinflation as growth fades. Instead of admitting that policy works with long lags, the Fed clings to a backward-looking obsession with proving its anti-inflation credentials. It is as though Powell is determined to be remembered as “tough,” even if that means being wrong.
America does not need theatrical sternness from the Eccles Building. It needs sound money and common sense. Inflation has come down. Growth has slowed sharply. Employment has weakened. Credit-sensitive sectors are under strain. The right move was not another pose of caution. It was a rate cut.
The Fed missed the moment. Again.
And Powell’s insinuation that he may simply remain in place until Washington resolves his succession only adds arrogance to error. The central bank needs humility, not self-importance; discipline, not drift; and above all, leadership that understands that keeping rates too high for too long is every bit as damaging as holding them too low for too long.
* * *
Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.
The views expressed in this piece are those of the author and do not necessarily represent those of The Daily Wire.

The Fed Missed The Moment. Again.

Economy

Forbes

WASHINGTON—President Donald Trump on Friday nominated former Federal Reserve governor Kevin M. Warsh to serve as the board&#8217;s next chairman.
Trump&#8217;s long-awaited <a href="https://www.dailywire.com/news/trump-names-next-fed-chair-pick-he-will-never-let-you-down?topStoryPosition=undefined&amp;author=Leif+Le+Mahieu&amp;category=News&amp;elementPosition=4&amp;row=1&amp;rowHeadline=Top+Stories&amp;rowType=Top+Stories&amp;title=Trump+Names+Next+Fed+Chair+Pick%3A+%E2%80%98He+Will+Never+Let+You+Down%E2%80%99" target="_blank" rel="noopener">announcement</a> comes after months of the president vowing to replace outgoing chairman Jerome Powell. Warsh came as a bit of a surprise, as conventional wisdom had coalesced around three candidates: National Economic Council director Kevin Hassett, BlackRock executive Rick Rieder, and Fed governor Christopher J. Waller.
In a Truth Social post, the president said that Warsh would &#8220;go down as one of the GREAT Fed Chairmen, maybe the best.&#8221; Warsh will need Senate confirmation to take his post, though with a Republican majority in the Upper Chamber, it seems likely that he will soon take the reins at the Fed.
Warsh began his career on Wall Street as an investment banker for Morgan Stanley before joining the Bush administration as an economic adviser in 2002. President George W. Bush named him to the Federal Reserve Board in 2006, where, at 35, Warsh became the youngest governor in the Fed&#8217;s history.
Warsh played a key role during the 2008 financial crisis, helping coordinate the central bank’s response. He was involved in efforts surrounding the government rescue and bailout of AIG and the emergency deal that led JPMorgan Chase to acquire Bear Stearns as markets unraveled.
After leaving the Fed in 2011, Warsh joined the board of UPS and became a distinguished visiting fellow in Economics at the Hoover Institution. Warsh met his wife, Jane Lauder, while they were undergraduates at Stanford University. Lauder is the daughter of Ronald Lauder, the heir of the Estée Lauder Companies and a close friend of President Trump. Lauder <a href="https://www.theguardian.com/us-news/2026/jan/15/ronald-lauder-billionaire-donor-donald-trump-ukraine-greenland" target="_blank" rel="noopener">reportedly</a> gave Trump the idea to purchase Greenland.
Warsh has gained a reputation as a fiscal hawk. “The United States is not Greece,” Warsh <a href="https://www.federalreserve.gov/newsevents/speech/kevin20100628a.htm" target="_blank" rel="noopener">said</a> in a 2010 speech. “We have the largest, most robust economy in the world. We have the deepest, most liquid financial markets. And the dollar is the world&#8217;s reserve currency, bestowing key advantages upon us. But, none of this is our birthright. It must be earned, and re-earned.”
He warned the Fed’s post-crisis stimulus could spark inflation and argued against expanding quantitative easing, pushing for a tighter monetary stance and a smaller Fed balance sheet.
He has argued that decisions over which assets the central bank buys and holds influence market pricing in ways he believes are better left to the Treasury Department. Like Treasury Secretary Scott Bessent, Warsh once worked for investor Stanley Druckenmiller, and has suggested that artificial intelligence could boost growth without reigniting inflation.
He has also drawn a firm line around the Federal Reserve’s role, stating, “The Federal Reserve is not a repair shop for broken fiscal, trade, or regulatory policies.”
Despite his reputation as a hawk, Warsh has recently argued for lower interest rates and sharply criticized Powell for moving too slowly.
“Their hesitancy to cut rates, I think, is actually quite a mark against them. It’s as if they’ve lost some of the credibility. Truth is, in economics and inflation, bygones are not bygones. The specter of the miss they made on inflation, it has stuck with them. So, one of the reasons why the president, I think, is right to be pushing the Fed publicly is we need regime change in the conduct of policy.”
Still, in December, the chief economist of Deutsche Bank <a href="https://www.investopedia.com/interest-rate-changes-could-be-on-the-way-under-kevin-warsh-trump-s-pick-for-fed-chair-11895919" target="_blank" rel="noopener">said</a> that “although Warsh has argued for lower rates recently, we do not view him as structurally dovish.&#8221;

Who is Kevin Warsh? Meet President Trump’s Pick To Chair The Federal Reserve

Greenland

Treasury Department

President Donald Trump announced Friday that he was nominating economist Kevin Warsh to be the next chairman of the Federal Reserve. 
Warsh, a critic of the current chair Jerome Powell, will need to be confirmed by the Senate. Trump has battled with Powell over interest rates and has even floated firing him. 
“I am pleased to announce that I am nominating Kevin Warsh to be the CHAIRMAN OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM,” Trump posted on Truth Social. “I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best. On top of everything else, he is &#8216;central casting,&#8217; and he will never let you down. Congratulations Kevin!”
Warsh is currently an economist at the Hoover Institution, a lecturer at the Stanford Graduate School of Business, and a partner at the Duquesne Family Office investment firm.
He was previously an economic policy advisor to President George W. Bush. He became the youngest Fed governor ever at 35 when he was nominated to the board of governors in 2006, a role he served in until 2011.
The Wall Street Journal <a href="https://www.wsj.com/economy/central-banking/the-long-campaign-of-kevin-warsh-e5bd26d6?siteid=yhoof2&amp;gaa_at=eafs&amp;gaa_n=AWEtsqdRm4kYWggpj1R8e-KL3-W5GGSrzrk8qvYRGFi75VF3a2FY2TDC4cc4OLjNu40%3D&amp;gaa_ts=697ca692&amp;gaa_sig=Kknzr6M6zFvuYJQa1uZKanpbHXZdkVYTZ_KmKd3E2YI43hUqQsdYQY9i8O-plIHPTtP1BAdEV3IAHER_y7HSZA%3D%3D">reported</a> that Warsh played a “crucial behind-the-scenes roles in Washington’s rescue of Wall Street during the financial crisis&#8221; of 2008.
If confirmed, Warsh would take over from Powell when his term as chair ends in May. Trump again <a href="https://truthsocial.com/@realDonaldTrump/posts/115978487020569325">ripped</a> into Powell on Thursday for not cutting interest rates, accusing him of damaging the economy and undermining national security. 
Trump on Friday commented on speculation that he would nominate National Economic Council Director Kevin Hassett. 
“There was great speculation that highly respected Kevin Hassett was going to be named Chairman of the Fed, and a great Chairman he would have been but, quite honestly, he is doing such an outstanding job working with me and my team at the White House, that I just didn’t want to let him go,” Trump wrote soon after announcing the Warsh pick. “Kevin is indescribably good so, as the expression goes, ‘if you can’t do better, don’t try to fix it!’ Thank you Kevin for doing such a great job!”
Trump has battled with the Federal Reserve throughout much of his second term. Earlier this month, the Justice Department launched a criminal probe into Powell over statements he made to the Senate about a costly renovation of the Federal Reserve. The Supreme Court is also considering whether Trump has the authority to fire Fed governor Lisa Cook.

Trump Names Next Fed Chair Pick: ‘He Will Never Let You Down’

Economics

Federal Reserve Chairman Jerome Powell announced on Friday that he was under investigation, and claimed that President Donald Trump&#8217;s administration was using the threat of an indictment as a punishment for his refusal to lower interest rates at the president&#8217;s direction.
Powell posted a video in conjunction with a <a href="https://www.federalreserve.gov/newsevents/speech/powell20260111a.htm">press release</a> on Saturday, explaining the Trump administration&#8217;s rationale for launching the probe and then pivoted to say that he believed the real reasons for the investigation were political.
WATCH:
<blockquote class="twitter-tweet">
Video message from Federal Reserve Chair Jerome H. Powell: <a href="https://t.co/5dfrkByGyX">https://t.co/5dfrkByGyX</a> <a href="https://t.co/O4ecNaYaGH">pic.twitter.com/O4ecNaYaGH</a>
— Federal Reserve (@federalreserve) <a href="https://twitter.com/federalreserve/status/2010510130970849338?ref_src=twsrc%5Etfw">January 12, 2026</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
&#8220;On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June. That testimony concerned in part a multi-year project to renovate historic Federal Reserve office buildings,&#8221; Powell said.
&#8220;I have deep respect for the rule of law and for accountability in our democracy. No one—certainly not the chair of the Federal Reserve—is above the law,&#8221; he added, before turning to suggest that the Trump administration was retaliating against him for refusing to adjust interest rates to the president&#8217;s satisfaction. &#8220;But this unprecedented action should be seen in the broader context of the administration&#8217;s threats and ongoing pressure.&#8221;
&#8220;This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress&#8217;s oversight role; the Fed through testimony and other public disclosures made every effort to keep Congress informed about the renovation project,&#8221; Powell claimed, arguing that the president was simply using those reasons as cover. &#8220;Those are pretexts. The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.&#8221;
&#8220;This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation,&#8221; he added. &#8220;I have served at the Federal Reserve under four administrations, Republicans and Democrats alike. In every case, I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maximum employment. Public service sometimes requires standing firm in the face of threats. I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people.&#8221;
Trump has repeatedly threatened to either fire Powell or sue him — as recently as late December — and has accused him of &#8220;gross incompetence.&#8221;

Fed Chair Powell Speaks At Greater Providence Chamber of Commerce 2025 Economic Outlook Luncheon

Jerome Powell Claims Trump Admin Launched Probe To Threaten Him Over Interest Rates

President Donald Trump announced that the federal government will purchase $200 billion in mortgage bonds in an effort he believes will help lower housing costs.
In a Truth Social post on Thursday, he said former President Joe Biden “ignored the housing market” and said that he, by contrast, is giving “special attention” to the issue.
“Because I chose not to sell Fannie Mae and Freddie Mac in my First Term, a truly great decision, and against the advice of the ‘experts,’ it is now worth many times that amount — AN ABSOLUTE FORTUNE — and has $200 BILLION DOLLARS IN CASH,” he said.
“Because of this, I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS. This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable,” the president continued. Trump directly said it would help in “restoring Affordability,” which has become a buzzword on the 2026 campaign trail as the country still recovers from post-pandemic and Biden-era inflation.
The announcement comes after he said on Wednesday that he would be taking action against institutional investors purchasing single-family homes.
“It is for that reason, and much more, that I am immediately taking steps to ban large institutional investors from buying more single-family homes, and I will be calling on Congress to codify it. People live in homes, not corporations. I will discuss this topic, including further Housing and Affordability proposals, and more, at my speech in Davos in two weeks,” Trump wrote on Wednesday.
The Daily Wire reported after Trump’s Wednesday announcement, this is part of a larger effort by the administration to tackle housing woes nationwide, including the push from the president to select a Federal Reserve chair who will aggressively cut interest rates, as Chair Jerome Powell leaves the role in May.
&#8220;Could somebody please inform Jerome ‘Too Late’ Powell that he is hurting the Housing Industry, very badly? People can&#8217;t get a Mortgage because of him. There is no Inflation, and every sign is pointing to a major Rate Cut,&#8221; the president posted to Truth Social in August.
Home prices have surged over the last decade by 105%, according to MoneyLion in October.

Trump Vows To Lower Mortgages With ‘$200 Billion’ Bond Purchase

Fannie Mae

freddie mac

Housing

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Daily Wire Investigative Reporter Luke Rosiak details his reporting on governmental waste and fraud before Congress, controversy swirls around Zohran Mamdani’s administration-to-be, and House Majority Whip Tom Emmer (R-MN) gives us an inside look at Minnesota’s fraud scandal.
It’s Thursday, December 11, 2025, and this is the news you need to know to start your day. Today’s edition of the Morning Wire podcast can be heard below, and the <a href="https://www.dailywire.com/episode/mrn-251211-member-exclusive">video version can be seen on The Daily Wire</a>:
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<h2 style="text-align: center;">Senate Digs Into DEI Fraud</h2>
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Topline: The Senate is investigating a multi-billion-dollar DEI fraud scheme, as the Federal Reserve lowered interest rates, sending markets soaring. 
Senate drills into DEI: The Small Business Administration’s 8(a) program was initially intended to offer support for those deemed “socially and economically disadvantaged.” Under the Biden administration, federal agencies were instructed to ensure 15% of all contracts were given to businesses operated by minorities or women, meaning billions of taxpayer dollars were awarded based on race and gender in what became one of the largest DEI programs in the country.
Not only was the program intentionally excluding people based on race, but it was also ripe with fraud. Daily Wire Investigative Reporter Luke Rosiak documented countless cases in which minority business owners would win a contract, then outsource all the work to non-minority-owned businesses, pocketing most of the money in the process.
On Wednesday, the Senate Committee on Small Business held a hearing to address the fraud, and Rosiak testified about his findings.
“8A creates a random group of influence peddlers who like lobbyists, get rich by selling their access to government insiders to the benefit of big businesses, while driving up the cost for all of us. This is the kind of thing people hate about Washington. You owe it to voters to end this program,” <a href="https://x.com/realDailyWire/status/1998848540135555157?s=20">said</a> Rosiak.
Interest rates: On Wednesday, the Federal Reserve Board voted to cut interest rates by a quarter point to the 3.5%-3.75% range. That means rates have now come down by nearly 2% over the last year and a half. They’re now at their lowest point in more than three years.
There was not unanimous agreement from the voting members of the Fed Board. For the first time in six years, three of the twelve officials cast dissenting votes, with two saying cuts weren’t needed, and one saying the cut should be bigger.
Essentially, the disagreement stems from whether the Fed should prioritize the labor market, which has slowed significantly, or inflation, which remains well above the target range of 2%. Typically, rates are raised when inflation is high, and lowered when the labor market is cool. Ultimately, the Fed Board, led by Chair Jerome Powell, viewed the labor market as a more pressing matter, and said these cuts would help with hiring and unemployment. 
<h2 style="text-align: center;">Mamdani’s Rule Already Stirring Controversy</h2>
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Topline: As New York City braces for a seismic shift in leadership with democratic socialist Zohran Mamdani taking the helm as mayor next month, a wave of controversy is erupting over his early moves.
Many political pundits, particularly those on the Right, warned that Mamdani would endanger public safety and undermine law enforcement, and now they say they’re seeing evidence for these claims even before he has officially taken office.
One of the most talked-about moves came just days ago, when Mamdani put out a video addressed to immigrants living in New York City. In it, he <a href="https://x.com/Bubblebathgirl/status/1997801475066745259?s=20">told</a> viewers they have the right to “stand up to ICE.”
Critics argue this goes beyond merely explaining constitutional rights. Some say it could embolden illegal aliens, even those with criminal records, to resist or evade lawful ICE action.
Mamdani’s transition: The transition team has been an explosive topic as Mamdani has tapped Mysonne Linen to be a key voice on justice reform on the “Committee on the Criminal Legal System.”
Linen was once a rising hip-hop star signed to Def Jam. But in 1999, he was convicted of two armed robberies where he held up taxi drivers at gunpoint. He served seven years and was paroled in 2006.
He then rebranded as a Black Lives Matter activist and co-founded Until Freedom with Linda Sarsour, a controversial pro-Palestinian activist who has also served as a Mamdani advisor.
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The choice has driven law enforcement apoplectic. Correction officers’ union head Benny Boscio called it “disheartening and deeply disturbing.” Retired NYPD brass such as John Chell see a pattern with Mamdani filling his team with anti-cop firebrands like black nationalist Lumumba Bandele, defund-the-police guru Alex Vitale, and others.
Mamdani says he just wants a broad array of “experiences and analysis” to draw from.
<h2 style="text-align: center;">What’s Behind The Massive Somali Fraud Scandal?</h2>
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Topline: The sweeping fraud allegations coming out of Minnesota have sparked demands for more investigations and further action from political leaders in D.C. to protect against billions more in taxpayer dollars getting funneled into the hands of fraudsters. Morning Wire spoke with House Majority Whip Tom Emmer, who represents Minnesota’s 6th congressional district, about the scandal. (This interview has been lightly edited.)
Morning Wire: We have this massive fraud scandal continuing to unravel this week. What do you believe were the most critical oversight failures within the Walz administration? And how should Minnesota restructure its safeguards to prevent this from happening again?
Emmer: The first thing you do is you got to get rid of [Minnesota Democratic Governor] Tim Walz and [Minnesota Attorney General] Keith Ellison and [Congresswoman] Ilhan Omar. I mean, there&#8217;s your biggest structural problem right there. Let me put some context around this for your viewers, your listeners. … The facts are this: today, there are roughly 80,000 Somali immigrants that are living in Minnesota. The vast majority of them live in Minneapolis or Hennepin County–an area called Cedar-Riverside. … Tim Walz and Keith Ellison cannot get votes in greater Minnesota. Think about this: in the last election, Tim Walz outspent the Republican candidates $15 million to $1.7 million, and he won with 52%, just over 52% of the vote. If you look a little deeper, we have 87 counties. Tim Walz only won the 13 metro counties. We&#8217;ll go a little farther. If you look at the 74 counties that he lost, he got 37% of the vote, including losing his former congressional seat by eight points. So, what is this about? This is about the fact that when he and Keith Ellison took office, Keith Ellison instantly set up a policy in his attorney general&#8217;s office that required his approval before any further investigations into fraud could go forward. Guess what? He&#8217;s never approved one of them. … And it&#8217;s not that all Somali immigrants are bad. It just so happens that 90% of the crimes we&#8217;re talking about have been committed by people that are in the Somali community. And by the way, they have been sending millions back to Somalia into the hands of Al-Shabaab, a known terrorist group. So, if you look at Keith Ellison, he won by a little less than one point in his last election. What is this all about? This is all about them getting re-elected. They need that 60 to 80,000 Somali population. They need them to be voting for them. That&#8217;s what this is all about.
Morning Wire: You mentioned the word accountability. We do have some individual actors being convicted, but what about on the government level? What about some of these officials? Is there any action being taken to hold people accountable if they looked the other way knowingly? What investigations are going on with that, and what do you hope to see pursued?
Emmer: Look, I think our U.S. Justice Department is starting to pick up where Minnesota should have been involved investigating not only the fraud but who might have been not just incompetent but actively engaged in the fraud because they should be criminally held, criminally responsible. You&#8217;ve got Dr. Oz, who&#8217;s investigating a fraud on the Medicaid program. You&#8217;ve got Kelly Loeffler, who&#8217;s investigating fraud in the SBA program. You got Kash Patel, who&#8217;s busy with his team investigating Somali gangs that have frankly been running rampant in the Twin Cities committing crimes and no one will hold them accountable for it.

MRN_251211_V2

Morning Brief: DEI Fraud Exposed, Mamdani’s Radical Moves, & Minnesota Scandal Reveals Fault Lines

Morning Brief: Senate Digs Into DEI, Mamdani Picks Stoke Controversy, And The Politics Of MN Fraud

Keith Ellison

Minnesota

Morning Wire

New York City

Tim Walz

Zohran Mamdani

WASHINGTON—The first Friday of every month usually brings one of the government’s most closely-watched economic indicators: the monthly jobs report.
The Federal Reserve relies on the report to make policy, while news outlets — and their readers — look to the monthly jobs report as an indicator of how the economy is doing. And the White House usually trumpets the jobs numbers to celebrate or defend its handling of the economy.
Thanks to the government shutdown, we aren’t going to get September&#8217;s job report.
The jobs report set to drop last Friday would have said that the United States added 50,000 jobs in September, economists estimate. That’s 32,000 more jobs than the previous month, but 200,000 fewer than September of last year. And while significantly down from highs in mid-2022, inflation is up from earlier this year at 2.9% for the 12 months ending in August.
But that’s all we’re getting so long as the government is shut down. Out of 2,055 employees at the Bureau of Labor Statistics (BLS), only one is still reporting for duty.
Even if that one employee wanted to put out the report, he couldn’t: the Antideficiency Act bars federal agencies from carrying out normal operations during a lapse in appropriations, unless their work relates to “emergencies involving the safety of human life or the protection of property.”
Jobs numbers may not be essential under the shutdown’s legal definition, but they are a critical input for the Federal Reserve, which has to make a decision on interest rates later this month.
“You know, it is such an unusual situation,” Powell said at last month’s Federal Reserve meeting. “Ordinarily, when the labor market is weak, inflation is low; and when the labor market is really strong, that’s when you’ve got to be careful about inflation.” Powell added that it’s a situation “where we have two-sided risk, and that means there’s no risk-free path.
Powell did note that the risk of a persistent inflation outbreak is down, allowing the Fed to pursue policy in the direction of neutrality. In September, the Fed Committee voted to lower the fed funds rate by a quarter percentage point.
Polymarket, the largest crypto-based prediction market platform, is predicting an additional 25-basis-point cut on Wednesday. Typically, the Fed avoids cutting rates when inflation is above 2%. But last month, it cited a weakening labor market as justification for the cut. With odds of a 25-basis-point cut at 90%, traders on Polymarket are expecting the Fed to cite a weakening labor market again.
This is the latest dustup in a bumpy year for the Federal Reserve.
In late August, President Trump called for the firing of Federal Reserve Governor Lisa Cook over allegations of mortgage fraud. Cook refused to resign, stating that the president did not have the authority to do so because the Federal Reserve is an independent agency.
And while Cook and Trump’s feud just began last month, the president has been sparring with Powell for most of his second term.
Last week, President Trump took to Truth Social to state, “I really believe that Jerome ‘Too Late’ Powell is an OBSTRUCTIONIST!”
In July, President Trump brought his transgressions in person when he toured the Federal Reserve construction project, noting the “cost overruns are substantial.”
The conflict notably escalated in April 2025 when Trump posted on Truth Social that Powell’s “termination cannot come fast enough!”
While not having fired anyone at the Fed, President Trump did fire Bureau of Labor Statistics Commissioner Erika McEntarfer, whom he claimed “RIGGED” jobs numbers. He nominated Heritage Foundation economist EJ Antoni to lead the Bureau, but the White House has since pulled the nomination.
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Regardless of who’s at the Bureau’s helm, job numbers won’t be released until the government reopens. And without Friday’s jobs numbers, the Federal Reserve will be forced to turn to alternative sources.
Speaking at the Nashville Area Chamber of Commerce today, Atlanta Fed President Raphael Bostic offered insight into alternative data reports.
“We have a survey center,” Bostic explained. “We do a bunch of surveys of businesses — for example we ask CEOs what’s your hiring plan for the next twelve months, what’s the likelihood you will reduce prices in the next quarter to get an idea of what actual decision makers are doing.”

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