It’s the first Fed day of 2026, and Chair Jerome Powell is in the hot seat.
Central bank leaders will announce their January interest rate decision at 2 p.m. ET. The meeting follows weeks of political pressure from the Trump administration and a recently announced Department of Justice probe.
Business Insider will be covering projections from economists, the Fed decision, and market moves all day. Check back here for updates.
President Donald Trump isn’t backing down from his criticism of Federal Reserve Chair Jerome Powell, even as an increasing number of fellow Republicans express a desire to cool tensions.
“Well, he’s billions of dollars over budget,” Trump told reporters at the White House Tuesday morning before departing for a trip to Michigan. “So, he’s either incompetent or he’s crooked. I don’t know what he is, but he certainly doesn’t do a very good job.”
On Sunday, Powell released an extraordinary video statement, confirming that he is under a criminal investigation for testimony he gave before Congress about renovations to the Fed’s headquarters. Powell said that the probe was being conducted in retaliation for his repeated defiance of Trump’s wishes regarding the independent central bank’s setting of interest rates.
“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,” Powell said in a nearly two-minute video released by the Fed.
Powell and the Fed have repeatedly denied that there is anything untoward about the cost overruns for the $2.5 billion renovations. In July, Powell accompanied Trump on a tour of the site where the pair sparred in front of reporters about the project.
“You just added in a third building is what that is,” Powell said in July after Trump cited a figure that was higher than other estimates. “It was built five years ago.”
An FAQ on the Fed’s website said the project has been costlier than expected due to a number of factors, including changes to the design, a larger-than-expected amount of asbestos, and the increase in the cost of materials.
Trump told NBC News he had no knowledge of grand jury subpoenas being sent to the Fed. Amid a firestorm, US Attorney for the District of Columbia Jeanine Pirro said that the Justice Department had no alternative but to subpoena the information.
“The United States Attorney’s Office contacted the Federal Reserve on multiple occasions to discuss cost overruns and the chairman’s congressional testimony, but were ignored, necessitating the use of legal process—which is not a threat,” Pirro said in a statement posted on X on Monday night.
In 2017, Trump nominated Powell, who was already a member of the Fed’s Board of Governors, to lead the central bank. Since then, Trump has soured on Powell and at times has mused about firing the Fed chair, though legal experts have disputed whether any president would have the power to do so.
The criminal probe into Powell could prove costly for the White House. Powell’s term as chair is up in May. For months, Trump has conducted a public search for his replacement. In a closely-divided Senate, Trump cannot afford to lose Republican support for any potential nominee.
After Powell’s statement was released, Sen. Thom Tillis, a Republican from North Carolina, said he would not support any Trump nominee until the investigation “is fully resolved.” Tillis serves on the Senate Banking Committee, where Republicans hold a 13-11 majority. If Tillis remained opposed, the committee could deadlock — likely stalling the nomination or, at the very least, requiring Republicans to take the rare step of changing the chamber’s rules.
Beyond Tillis, a handful of other Republicans on Capitol Hill have also decried the criminal probe. All three living former Fed chairs, including Reagan appointee Alan Greenspan, have lined up behind Powell, as have the current leaders of central banks around the world.
The internet has a surprising new muse: Federal Reserve Chair Jerome Powell.
Powell is famously mild-mannered. About four times a year, he emerges from meetings with Federal Reserve governors and regional bank presidents to hold press conferences on their analysis of jobs data, inflation reports, and subsequent interest rate projections (the infamous “dot plot”).
Not exactly typical fodder for going viral. But on Monday, after Powell released a video saying he’d been subpoenaed by the Justice Department as part of a pressure campaign, he started getting the meme treatment.
“I have deep respect for the rule of law and for accountability in our democracy,” Powell said in Sunday’s two-minute video. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
Social media thought it was a banger.
President Donald Trump has called on Powell, whose term doesn’t end until May 2026, to lower interest rates more quickly. Powell has refused and insisted on the Fed’s independence. Trump has also repeatedly threatened to fire Powell.
The president denied any involvement in the DOJ investigation in an interview with NBC on Monday. “I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump said.
Meta has a new president — and she’s a former advisor to President Donald Trump.
The tech giant named Dina Powell McCormick as its president and vice chairman on Monday. Powell McCormick joined Meta’s board in April before resigning in December.
Before joining Meta, Powell McCormick served as a deputy national security advisor to Trump. The president applauded her appointment on Truth Social: “A great choice by Mark Z!!”
Powell McCormick is the second former Trump official appointed to a Meta leadership position in 2026. Last week, the company hired C.J. Mahoney, a deputy US trade representative during Trump’s first term, as its chief legal officer.
Here are three things to know about Dina Powell McCormick:
Powell McCormick worked as a Trump advisor during his first term, with a focus on the Middle East.
She had a personal tie to the region. Powell McCormick was born in Cairo, where her father was a captain in the Egyptian army. In 1977, her family moved to Dallas.
During her stint with the Trump administration, Powell McCormick oversaw a $200 billion US-Saudi arms deal, spearheaded Trump’s Middle East tour, and was considered to take over as Trump’s chief of staff or representative to the United Nations.
She left the Trump administration in 2018.
Mitchell Leff/Getty Images
Powell McCormick also served under President George W. Bush. She started in a personnel role, before rising to senior White House assistant and assistant secretary of state under Condoleezza Rice.
At the time of her resignation in 2007, Powell McCormick was the highest-ranking Arab American in the Bush administration.
After leaving the Bush administration, Powell McCormick went to Goldman Sachs, where she was hired as a managing director.
Powell McCormick shot up in stature, making partner in three years. Her rapid rise sparked some bitterness among Goldman’s underclass, according to The New York Times and Vanity Fair.
Under her leadership, Goldman launched its 10,000 Women program. She also oversaw the 10,000 Small Businesses program and served as the president of the Goldman Sachs Foundation.
Dimitrios Kambouris/WireImage
Powell McCormick was popular among some of Goldman’s biggest names, including Anne Black, the former president of Goldman Sachs Gives and current managing partner at JP Morgan.
“She was really a steadfast champion for me and others of us on the team, who were all promoted thanks to her,” Black told Vanity Fair. “She elevated my game, inspired me to be creative and bold, and expected us to show results.”
Powell McCormick left Goldman Sachs in 2023.
While Powell McCormick no longer works in politics, she’s still involved through her husband: Pennsylvania senator Dave McCormick.
The couple wed in 2019. Soon after, Dave began eyeing a Senate run, and Dina became involved in the campaign. She made trips to Mar-a-Lago with her husband and appeared in several ads.
Dave ended up conceding the Republican nomination to Mehmet Oz — also known as television’s Dr. Oz — in the 2022 race. Oz lost the general election to John Fetterman and was later appointed by Trump to lead the Centers for Medicare & Medicaid Services.
Alex Wong/Getty Images
In 2024, Dave ran again, narrowly winning a Senate seat and beating incumbent Bob Casey. Dina accompanied him to his swearing-in.
Federal Reserve Chair Jerome Powell said the US central bank was served grand jury subpoenas on Friday from the Department of Justice that threatened criminal indictment.
In a statement on Sunday night, Powell said the subpoenas focused on his June testimony about renovations at historic Fed office buildings. The Fed chair said the subpoenas were the latest move in the Trump administration’s pressure campaign on the central bank to lower interest rates.
“No one — certainly not the chair of the Federal Reserve — is above the law,” Powell said. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
He added: “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 also suggested that this latest threat won’t lead to his departure from his position, which President Donald Trump has repeatedly called for. Powell said he would continue to do his job.
The dollar and US stock futures fell on concerns about the Fed’s independence on Sunday. Gold, seen as a haven investment, rose as much as 2%.
The $2.5 billion planned headquarters renovations have become a major talking point for White House officials, who have accused Powell of overspending and breaking oversight laws.
In July, Trump said that Powell’s actions were “sort of” grounds for dismissal but later said he was “highly unlikely” to fire Powell, unless it was for “fraud.” Powell has defended the renovations.
Trump has urged the Federal Reserve — an independent government agency — to lower interest rates as part of his plan to spur the American economy.
In its December meeting, the Fed cut rates to a range of 3.5%—3.75%, following similar reductions in September and October. After the meeting, Trump called Fed Chair Jerome Powell “a stiff” who approved a “rather small” cut and said the cut could have been “at least doubled.”
The president has also targeted Lisa Cook, a Fed governor. In August, he asked her to resign immediately due to allegations that Cook had committed illicit activity related to two mortgage loans. In September, a federal judge ruled that Cook can keep her job at the central bank for now.
The DOJ did not immediately respond to a request for comment. The White House referred Business Insider to the DOJ.
