The DOJ's Powell Probe, Trump Slams Exxon Mobil, Apple-Gemini AI Connection 1/12/26

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Carl Quintanilla (0:59)

Market moving insight and analysis. Join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street. Good Monday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with David Faber here at Post 9 of the New York Stock Exchange. Cramer is at the JP Morgan Healthcare Conference in San Francisco. More on that in a moment. Meantime, stocks down, bonds down, dollar down as the street reacts to federal prosecutors investigating the Fed chair's testimony to Congress, a threat that many argue is in danger to Fed independence. Week is going to be packed with eco data, conferences, bank earnings, and maybe a SCOTUS decision on tariffs. A roadmap begins with markets under pressure as prosecutors do begin a criminal investigation into the Fed chair.

David Faber (1:42)

Plus bank stocks and credit card related companies, those stocks all dropping in the early trading. This, of course, as the president calls for a one-year cap on credit card rates. And Exxon Mobil also under fire. This is President Trump also threatening to sideline that company from Venezuela's oil market, saying they're playing it too cute.

Carl Quintanilla (2:05)

Let's begin with stocks down today around the globe. The Fed chair confirming the DOJ served the Fed with grand jury subpoenas on Friday, threatening a criminal indictment over his Capitol Hill testimony about the central bank's building renovation. In a video posted last night on the Fed's website, Powell said the probe is a pretext as part of the president's push for lower rates.

Jerome Powell (2:26)

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. 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.

Carl Quintanilla (3:17)

And Jim, as you wrote this morning, Powell finally pushing back.

Jim Cramer (3:23)

Right. Well, look, I think that Chairman Powell has done a terrific job, and he's out there every day trying to figure out which is the best way for rates to go. And you get sidelined, but I think it's important to point out about criminality. I think that for pretty much since the founding fathers, Mr. Franklin, we always had this idea that when you go to a grand jury and you bring a criminal charge, you're going to get a criminal charge. A grand jury will just lay down and do it. And this is a matter, like many of the matters that the president talks about, they get them criminalized. And when you get them criminalized, it really makes it so that you, it changes your life rather dramatically. And I think that Powell's amazing to want to fight it and not say, listen, can we have some sort of deal? What is this? But I think he's right. You know, David, look, I think this is pretty naked. You want rates down, but I think it's unfortunate. Powell's not going to be Fed Chairman much longer. So what you're doing is attacking the chair itself and not the chairman.

David Faber (4:19)

Well, I think that is the takeaway this morning for many, Jim, is that this is not necessarily as much about Powell as it really could be about his successor. And the idea that this president and this administration is going to do whatever it takes regardless. So even if they get their person in there, so to speak, their person, obviously, they're going to be choosing that person. Jim, there is this idea that they are not expected then to perhaps show that real independence that they all claim they will have because, of course, there's the shadow of being indicted, I guess.