Where things stand
• Focus on the economy: President Donald Trump is traveling to Michigan today, where he’ll tour a Ford factory and speak at the Detroit Economic Club. The visit comes as new Bureau of Labor Statistics data shows US consumer prices rose 2.7% annually in December.
• Fed investigation: Treasury Secretary Scott Bessent has told people he is unhappy with the decision to criminally investigate Federal Reserve Chair Jerome Powell, a source with knowledge of the matter told CNN. Republicans have pushed back on the probe, and central bankers from around the world have since expressed support for the Federal Reserve System.
• Iran protests: Trump said he’s canceled any meetings with Iranian officials until the crackdown on protests ends, suggesting the window he saw for diplomacy may have closed. That follows his Monday announced that countries that do business with Iran will face a 25% tariff. Follow CNN’s live coverage of the Iranian protests.
Thune says Senate should be briefed on Powell probe
Senate Majority Leader John Thune said that “at some point” senators should be briefed on the DOJ investigation into Federal Reserve Chairman Jerome Powell as he acknowledged he knows little about the underpinnings of the probe other than what he has read in the news.
On President Donald Trump’s call to cap interest rates on credit cards at 10%, Thune cautioned it could hurt people’s ability to access credit.
“That would probably deprive an awful lot of people of access to credit around the country, credit cards would probably become debit cards,” he said. “That’s not something I’m out there advocating for. Let’s put it that way.”
Asked separately if he thinks military strikes against Iran are on the table.
“I haven’t been briefed, and I would want to know exactly, I guess, what we’re thinking. Obviously, we want to support what’s happening there in terms of the cries for democracy and people who are speaking out against the regime and ultimately love to see regime change,” he said.
“But there are lots of ways of accomplishing that, and hopefully ways that don’t involve military action.”
House Republicans express some support for DOJ probe into Powell
Some House Republicans appeared supportive of the Justice Department’s criminal investigation in Federal Reserve Chairman Jerome Powell.
Here’s what they’re saying:
Rep. Ralph Norman, who sits on the House Financial Services Committee, told reporters Tuesday that investigating is “the right thing to do.”
Rep. Nick LaLota downplayed the move from the DOJ as “just an investigation at this point. It’s not an indictment” and argued that the hefty price tag for the Federal Reserve headquarters is “worthy of investigation.”
“That’s more than Yankee Stadium for a federal office building. I think that’s worthy of investigation. Certainly, if he lied to Congress, that’s worthy of an investigation, because $2.5 billion’s a heck of a lot of money for a simple federal office building,” the New York Republican said.
Rep. Tim Burchett said that if Powell “knowingly lied to us in Congress, sure, he perjured himself.”
“The incredible spending at the Federal Reserve – see I’m one of those that, the Federal Reserve, I think, needs to go away. I think it’s created in a back room with a bunch of wealthy old white dudes and to control things, and they’ve done a pretty dadgum job of doing it and wrecking things,” he said.
House Speaker says DOJ's Powell probe has to "play out" and no one is immune from a "credible allegation"
House Speaker Mike Johnson on Tuesday dismissed concerns that President Donald Trump’s pressure on Federal Reserve Chairman Jerome Powell might impact the work of the independent agency and said the criminal investigation into Powell should be allowed to run its course.
Johnson called it a “serious allegation” that Powell was possibly untruthful in his June testimony to lawmakers, adding, “that is not a congressional investigation. That’s a DOJ investigation. We have to let that play out.”
The Justice Department is investigating the central bank’s $2.5 billion renovation of its headquarters in Washington, DC and Powell’s remarks about it to Congress. Powell and others have condemned the probe as an apparent attempt to influence his decisions on interest rates.
“If there’s a credible allegation or concern in someone’s lying to Congress, then the DOJ should investigate across the board. No matter who it is, no one is immune from that,” Johnson said.
“The Fed will continue to operate. There’ll be a new chairman come May, and we’ll go forward, but I’m going to reserve judgment on it, as I suspect all of you should, do as well,” he later added.
Johnson says Clintons "by definition" acted in contempt in House Epstein probe
House Speaker Mike Johnson said Bill and Hillary Clinton deserve the scrutiny that they’re receiving for refusing to testify before the House Oversight Committee, dismissing the argument that the panel should probe President Donald Trump with the same zeal over his connections to Jeffrey Epstein.
“I think it’s a defiance of Congress for them to defy the subpoena. I mean, I think by definition, it’s in contempt of Congress, and we’ll have to see how it plays out,” he said.
Asked by CNN if he would bring a resolution from House Oversight Chairman James Comer’s contempt proceedings into former President Bill Clinton to the House floor, Johnson said it’s “too early to determine” that.
Read more on the Clintons’ refusal to appear for their scheduled depositions this week.
Top Republican on committee that oversees Federal Reserve says Powell probe an 'unnecessary distraction'
The Republican chair of the House committee that oversees the Federal Reserve called the criminal investigation of Fed Chairman Jerome Powell an “unnecessary distraction” and defended Powell as a “man of integrity.”
House GOP Rep. Tom Cole also warned that such an investigation into the Federal Reserve is “destabilizing” and “looks like Justice Department is being used as a weapon.”
“It’s important to remember he has not been charged with anything. It’s an investigation. But it better get over quick. Or I think, if there’s nothing there, and I would hope and think there is nothing there, then this is destabilizing, and it looks like Justice Department is being used as a weapon, and I don’t want that to ever happen under any administration,” he told reporters Tuesday.
Asked if he thinks the DOJ is being weaponized, Cole said, ”I’m not sure, but the appearance is not good.”
“I think something like this is not helpful to either the economy or trying to keep the temperature down politically. So again, if there’s something there fine, go ahead and make the charges. He’ll have his day in court. But you better be able to prove it,” he said.
GOP Rep. Kevin Kiley of California argued that it’s “pretty unusual to have this approach to an issue of cost overruns” and that it’s typically a matter for congressional oversight.
Trump again pressures Powell to lower interest rates
President Donald Trump again ramped up the pressure on Fed Chair Jerome Powell to lower interest rates, just days after federal prosecutors opened a controversial criminal investigation into him that has prompted significant GOP blowback.
“Great (LOW!) Inflation numbers for the USA. That means that Jerome ‘Too Late’ Powell should cut interest rates, MEANINGFULLY!!! If he doesn’t he will just continue to be, ‘TOO LATE!’” Trump posted on Truth Social on Tuesday.
As CNN reported, the latest Consumer Price Index showed that the annual pace of inflation was unchanged from November at 2.7%, according to Bureau of Labor Statistics data released Tuesday.
Later Tuesday, when asked by a reporter whether he’s concerned the investigation into Powell will undermine confidence in the Fed, Trump criticized Powell’s job performance and claimed he’s “billions of dollars over budget” on its $2.5 billion headquarters renovation project.
“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 doesn’t, certainly doesn’t do a very good job,” Trump said while leaving the White House for Michigan.
Trump has said he doesn’t know anything about the criminal investigation, but Powell has said he sees the move as politically motivated.
“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,” he said in a Sunday night video message.
Trump says all meetings with Iran are off until crackdown on protesters ends
President Donald Trump said today he’s canceled any meetings with Iranian officials as a crackdown on protesters continues, suggesting the window of diplomacy that he saw opening days ago had closed.
In a message on Truth Social, Trump encouraged protesters to keep up the demonstrations, and said “help is on the way.”
“Iranian Patriots, KEEP PROTESTING - TAKE OVER YOUR INSTITUTIONS!!!” Trump wrote.
“Save the names of the killers and abusers. They will pay a big price,” he went on. “I have cancelled all meetings with Iranian Officials until the senseless killing of protesters STOPS. HELP IS ON ITS WAY.”
He ended by writing “MIGA,” or Make Iran Great Again.
On Sunday, Trump suggested he was open to talks with the Iranian regime after receiving communication over the weekend. He said a meeting was being set up.
But his message two days later indicated he no longer believes talks would be fruitful.
As Trump prepares to speak on the economy, data shows US inflation remained higher than expected last month
As President Donald Trump prepared to head to Michigan for a visit focused on the economy, Bureau of Labor Statistics data released Tuesday shows that US consumer prices rose 2.7% annually in December, closing out a year that saw slight progress on inflation but continued affordability concerns for many Americans.
The latest Consumer Price Index – which measures the average change in prices for some commonly purchased goods and services – showed that the annual pace of inflation was unchanged from November, according to the data.
However, the monthly pace of inflation accelerated to 0.3% from November, when prices rose at an estimated average pace of 0.1%.
Economists were expecting that monthly CPI would rise 0.3% from November and ease slightly to 2.6% on an annual basis, according to FactSet estimates.
Trump is expected to speak about the economy at the Detroit Economic Club later this afternoon.
Here's what's on Trump's agenda today
President Donald Trump is heading today to Detroit, Michigan, where he’ll focus on the economy.
He’s set to participate in a Ford site visit and plant tour at 12:30 p.m. ET. And later this afternoon, at 2:00 p.m. ET, he’ll speak to the Detroit Economic Club.
