Powell, Iran options, Minnesota and Golden Globes

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Reuters World News 9 min 7 speakers 5 chapters transcribed
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What is the main topic discussed in this episode?

Kim Vennell 0:00
Hi, I'm Kim Vennell in Whanganui, New Zealand. It's Monday, January 12th. Today, Jerome Powell says he's being threatened with a criminal indictment. Trump mulls options for intervening in Iran as the death toll from protests there rises. Homeland Security orders more officers into Minneapolis.

What are the implications of Jerome Powell facing a criminal indictment?

Kim Vennell 0:21
And stars hit the red carpet for this year's Golden Globes. This is Reuters World News, bringing you everything you need to know from the front lines in 10 minutes, seven days a week. We start with a significant escalation in US President Donald Trump's push for more control of the Federal Reserve and of interest rates. Fed Chair Jerome Powell says US federal prosecutors have opened an inquiry into him and are threatening him with a criminal indictment about a building renovation project. But in a video message, Powell says that's a pretext to

What options is Trump considering for intervention in Iran?

Jerome Powell 1:06
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.
Kim Vennell 1:18
Fed reporter Howard Schneider has more on Powell's response.
Howard Schneider 1:21
He is saying flat out that he regards this as an effort by the administration to use the Justice Department, to use the threat of a criminal indictment, to put pressure on him because he's not doing what the president wants on interest rates, which is a pretty remarkable kind of outing of Powell's view in his heart of hearts about this whole thing. That hasn't happened yet. He's been very kind of distanced himself from it and tried to not kind of take the bait, if you will, and get into a shouting match with the president of the United States. But I guess the arrival of grand jury subpoenas and the threat of a criminal indictment has made him speak out.
Kim Vennell 1:58
Howard says the blowback has been swift.

How is Homeland Security responding to the situation in Minneapolis?

Kim Vennell 2:01
Powell's term as Fed chair ends in three months, and his replacement, while chosen by Trump, must be approved by the Senate Banking Committee. One of the key people to agree on the replacement is Republican Senator Tom Tillis, who is now speaking out.
Howard Schneider 2:17
Tillis has said in a very quick statement, it's not Powell's judgment that should be in question here. It's the Department of Justice. And I'm not voting for any nominee, including for Fed chair, until this gets resolved. Because there's no secret in my mind now that Donald Trump is trying to destroy the independence of the Federal Reserve.
Kim Vennell 2:38
And to hear how markets are reacting to the news, here's Mike Dolan from our sister markets podcast, Morning Bit.
Mike Dolan 2:45
Hi, Kim. Yeah, the Powell news is the big breaking story for markets this morning. The dollar is the focus. It's fallen against the euro and other major currencies on this. U.S. stock futures are also down, having closed on Friday at record highs, it has to be said. And treasuries, it's hard to gauge. Tokyo markets closed overnight, so we're only getting cash trading today. running up into the US open. And that will be a major focal point, even though there are two big debt auctions today to complicate matters.
Kim Vennell 3:16
Thanks, Mike. You can hear Morning Bid wherever you get your podcasts. President Trump says he's reviewing options to intervene in Iran and isn't ruling out using the military.
Donald Trump 3:27
Seriously, the military is looking at it. and we're looking at some very strong options.
Kim Vennell 3:34
It's the starkest signal yet that the US may act as the death toll from anti-regime protests in Iran continues to rise. A warning, some of the details of what's happening in Iran are disturbing. In Tehran, bodies line the streets outside a morgue. Families and friends gather to identify their loved ones. Nearby, people in hazmat suits load bodies onto a truck. The bystander footage was released on Sunday, and although Reuters was able to verify the location it was shot, we could not verify the date.

What were the highlights from the Golden Globes this year?

Kim Vennell 4:12
Protests have swept the country, with people angry of a sky-high inflation, a collapse in currency, and social and political repression. It's the biggest challenge to the Islamic Republic's clerical establishment since 2022.

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