Pivot

Fed Chair Investigation, Trump's Oil Deals, and California's Proposed Wealth Tax

with Kara Swisher and Scott Galloway
13 Jan 2026 11 min read 1h 42m
TL;DR

Fed Chair Jerome Powell released a defiant statement defending the Federal Reserve's independence from political pressure, calling the criminal investigation into him 'unprecedented.' Powell's leadership in controlling inflation while avoiding recession positions him as a potential future Presidential Medal of Freedom recipient, while the investigation itself signals Trump's attempt to intimidate the Fed into lowering interest rates for political gain.

Key Moments
Jerome Powell (video statement)
“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. 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.”
Powell released a statement defending the Fed's independence after the Justice Department opened a criminal investigation into him over the central bank's renovation and alleged congressional testimony.
▶ 17:10
Scott Galloway
“He had an unprecedented increase in rates when he saw inflation peak at 9% and he's brought it down to about 2.8%. He will go down arguably is one of the most seinal figures uh uh positively in terms of the US economy.”
Galloway defends Powell's economic record and argues he avoided both inflation spiral and recession.
▶ 20:27
Kara Swisher
“This guy's known for his looks, you're going to be known for your looks. That's the bottom line.”
Discussing public figures and cosmetic surgery, referencing the scrutiny faced by celebrities who change their appearance.
▶ 8:40
Scott Galloway
“This isn't about trying to intimidate him into resigning. That's not what this is about. This is about trying to intimidate him into resigning from the board of governors because his role on this board, basically on every board, when he speaks, everyone's going to listen.”
Explaining the real strategic motivation behind the investigation—removing Powell's influence on the Federal Reserve board even after his term as chair ends.
▶ 22:19
Kara Swisher
“I have never been more confident about a future recipient of the Presidential Medal of Freedom than Chairman Powell.”
Swisher expresses confidence that Powell's principled stand will be historically vindicated.
▶ 24:50
About the show
›
Pivot is a twice-weekly podcast from New York Magazine and Vox Media that covers tech, business, and politics through sharp analysis and insider perspective. Hosted by Kara Swisher and Scott Galloway, the show dissects major news stories affecting the economy, markets, and power structures in real time.
Takeaways
1
Fed independence from politics is foundational to economic stability Powell's defiant video statement reframes the investigation as an assault on institutional independence. Presidents face electoral pressure to lower rates for short-term gains, but unchecked monetary easing creates inflation spirals that destabilize entire economies. The Fed's 12-year chair term structure exists precisely to insulate it from political cycles.
2
Powell's real value lies beyond his chairmanship The investigation's true target isn't Powell's resignation as chair—his term ends in May anyway. It's forcing him off the Federal Reserve's Board of Governors, where his voice carries outsized influence. Removing him would leave Trump free to staff the board with yes-men willing to slash rates for political theater.
3
Trump's strategy reveals economic desperation The criminal investigation signals Trump's inability to win Powell through persuasion or normal pressure. His administration is resorting to prosecution of a respected technocrat, a move that likely strengthens Powell's credibility with markets and the public while exposing the autocratic instincts the Founders explicitly guarded against.