Bloomberg News Now
Powell Vows Subpoena Push Back, Iran: Security Forces In Control, More
12 Jan 2026
Chapter 1: What is the main topic discussed in this episode?
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News when you want it with Bloomberg News Now. I'm Lizzie Burden. And I'm Caroline Hepker. The Federal Reserve has been served with grand jury subpoenas from the US Justice Department. Fed Chair Jerome Powell says the court orders threatened criminal charges related to his testimony about the renovation of the central bank's headquarters.
In a forceful video statement, Powell said the legal move was designed to exert pressure on the Fed to lower interest rates.
No one, certainly not the chair of the Federal Reserve, is above the law. But this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure. This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress's oversight role.
The Fed, through testimony and other public disclosures, made every effort to keep Congress informed about the renovation project. 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.
Fed Chair Jerome Powell went on to say that the legal action sets the stage for a battle over whether monetary policy will be based on economic data or, quote, directed by political pressure or intimidation. In a brief interview with NBC News on Sunday night, President Trump denied knowledge of the U.S. Justice Department's investigation into the central bank.
The president said he believes Powell is, quote, certainly not very good at the Fed and he's not very good at building buildings.
Activists say that more than 500 people have died so far in the latest waves of protests in Iran. After three weeks of demonstrations, the regime in Tehran is confronting the most serious challenge to its authority in years. The US-based human rights activist's news agency says it's tracking protests in 186 cities across Iran, with an estimated 10,000 people already imprisoned. U.S.
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Chapter 2: What legal challenges is Fed Chair Jerome Powell facing?
Communications in Iran remain largely cut off, which has made it difficult to track the full scope of the protest movement. President Trump says that he now plans to speak to Elon Musk about activating his Starlink service to help restore internet access in the country.
Elsewhere, Bloomberg has learned that a group of European countries, including Germany and the UK, is discussing plans for a military presence in Greenland to show the US president it's serious about Arctic security. But on Sunday night, Donald Trump insisted ownership of the island was the key issue.
Look, if we don't take Greenland, Russia or China will. And I'm not letting that happen. If we don't take Greenland, Russia or China will take Greenland. And I am not going to let that happen. Yeah, sure. I'd love to make a deal with them. It's easier. But one way or the other, we're going to have Greenland.
The US president added NATO countries need America more than it needs them. For now, Denmark's still hoping a diplomatic trip to Washington this week can calm Trump. Rasmus Jarlow, who chairs the Danish Parliament's Defence Committee, says the American plans don't work for Greenlanders.
Indonesia and Malaysia have become the first countries to restrict access to Elon Musk's Grok AI over its generation of sexual content. In a statement issued on Saturday, Indonesia's Communications and Digital Affairs Ministry said Grok is being banned temporarily. to protect the population from fake pornographic content.
Meanwhile, Malaysia's internet regulator said it's limiting access to Grok until effective safeguards are implemented. The move comes as Musk's ex-AI, which owns Grok, decided on Friday to restrict the image generation feature to paid subscribers on the ex-social media platform after the AI tool was used to generate undressed images of women and children.
Finally, here in the UK, employers cut back hiring again last month in another sign of a sharply weakening jobs market. Data from a Recruitment and Employment Confederation survey shows a jump in job seekers in December, largely driven by redundancies. Bloomberg's James Woolcock has more.
Evidence suggests employers are cutting back on hiring. The REC and KPMG survey adds to the pile of evidence of a shakedown in the labour market. Unemployment is near a five-year high, with many pointing to higher taxes making businesses start firing. Normally, redundancies drop around Christmas, so the sharp move in the other direction is likely to worry Bank of England policymakers.
In London, James Woolcock, Bloomberg Radio.
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Chapter 3: How does Powell view the impact of subpoenas on monetary policy?
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