Zuckerberg names banker, ex-Trump advisor as Meta president
By AFP
January 12, 2026


Dina Powell McCormick is married to Republican senator from Pennsylvania, Dave McCormick - Copyright GETTY IMAGES NORTH AMERICA/AFP JEFF SWENSEN

Meta on Monday appointed banker Dina Powell McCormick as president and vice chairman, tapping a former member of the Trump administration to help steer the technology giant’s massive AI infrastructure expansion.

Powell McCormick, who served on Meta’s board, will join the company’s management team as it scales what founder and CEO Mark Zuckerberg described as “the massive physical and financial model that will power the next decade of computing.”

“Dina’s experience at the highest levels of global finance, combined with her deep relationships around the world, makes her uniquely suited to help Meta manage this next phase of growth,” Zuckerberg said.

In a separate post, Zuckerberg said Powell McCormick “will be involved in all of Meta’s work, with a particular focus on partnering with governments and sovereigns to build, deploy, invest in, and finance Meta’s AI and infrastructure.”

The appointment comes as Meta accelerates investments in artificial intelligence infrastructure, including data centers and energy supply.

In her new role at Meta, Powell McCormick’s banking experience will be key. She will help guide the company’s overall AI infrastructure strategy and oversee its multi-billion-dollar investments.

She will also focus on building partnerships to expand the company’s investment capacity, the company said, as Meta seeks to keep up with its big tech rivals in spending massively on AI.

An Egyptian-American, Powell McCormick spent 16 years as a partner at Goldman Sachs, serving on the firm’s management committee and leading its global sovereign investment banking business.

Sovereign wealth funds from the Middle East have become major investors in the AI infrastructure build-out and could play a role in Meta achieving its AI spending goals.

Her last job was at BDT & MSD Partners, a bank and advisory firm that has been involved in finding US investors for TikTok, according to news outlet Axios.

Her hiring continues Zuckerberg’s political pivot to the right, with Republican Powell McCormick one of the company’s most visible arrivals since Sheryl Sandberg, the former chief operating officer and member of the Clinton administration who left in 2022.

Zuckerberg has recently made a visible shift toward President Donald Trump and conservative positions, doing away with third-party fact-checking, reversing company diversity initiatives and embracing a more traditionally masculine image.

Trump congratulated Powell McCormick on the appointment in a social media post, calling her “a fantastic, and very talented, person, who served the Trump Administration with strength and distinction.”

Powell McCormick served as deputy national security advisor during Trump’s first term, a role in which she helped shape US foreign policy.

She is married to the Republican senator from Pennsylvania, Dave McCormick.




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'Smells so swampy': Internet disgusted as ex-Trump aide lands major job at Meta

Nicole Charky-Chami
January 12, 2026 
RAW STORY


Sen. Dave McCormick (R-PA), then-Senate candidate, speaks to supporters alongside his wife, Dina Powell McCormick, at an election night event in Pittsburgh, Pennsylvania on May 17, 2022. REUTERS/Quinn Glabicki

The internet reacted Monday to the news that a former aide to President Donald Trump has been named a top leader at Meta.

Dina Powell McCormick, former deputy national security advisor and wife of Sen. Dave McCormick (R-PA), was named Meta's next president and vice chairman in a company announcement.

President Donald Trump reacted to the leadership change in a Truth Social post:

"Congratulations to DINA POWELL MCCORMICK, WHO HAS JUST BEEN NAMED THE NEW PRESIDENT OF META. A great choice by Mark Z!!! She is a fantastic, and very talented, person, who served the Trump Administration with strength and distinction! President DJT"

Social media users had a mix of reactions:

"Oh, Jesus ... Is this why you don't support the SAVE Act? Was that the price Zuck demanded? This smells soooooo swampy," user Maggie Leber wrote on X.

"Wow," Sean Logue, criminal and injury attorney, wrote on X.

"That her husband is a sitting senator from PA and sits on several committee - including Foreign Relations and Finance - is not mentioned but maybe relevant? This has probably happened before, but isn’t this the 'swamp' so many claim to be against? Ah, yes, but only for people you dislike," user KJ Schneider wrote on Bluesky.

"Good bye, Mark. Unsubscribing now from all Meta accounts," user Marc Abrams wrote on Bluesky.

"There are very good oligarchs, on both sides," retired journalist Greg Gardner wrote on Bluesky.

"More bowing to the regime," sound recordist Jesse Dubé-Smith wrote on Bluesky.

'One of the dumbest people on earth!' Congress member goes scorched earth on Elon Musk

Robert Davis
January 12, 2026

RAW STORY


Elon Musk is seen with a bruised eye that Musk claimed he received at the hands of his son, X Æ A-12, as he attends a press conference with U.S. President Donald Trump in the Oval Office at the White House in Washington, D.C., U.S., May 30, 2025. REUTERS/Nathan Howard

Rep. Ilhan Omar (D-MN) squared off against Elon Musk on Monday after Musk posted a conspiracy theory about the Somali community in Minnesota.

Musk retweeted a post on his social media platform X about an alleged voter fraud scheme where voters are imported from other countries and given welfare benefits in exchange for their votes. Musk said in his post that the same "scheme" is playing out across the country, and attempted to tie Omar to the conspiracy.

"A large number of relatively recently arrived Somalis will elect only a Somali to Congress in that Minnesota district," Musk posted. "This is much more subtle, but just as bad, in many other parts of America."

Omar didn't mince words in her reply.

"You are one of the dumbest people on earth, my district is literally a majority white district," Omar wrote. "Your conspiracy theories are laughable and should have no place in a society that cares about facts."

Omar has been a target of the Trump administration and its allies for several years. Their feud began after she supported his two impeachments, and has intensified amid the second administration's intense deportation operations.

UK regulator opens probe into X over sexualised AI imagery


By AFP
January 12, 2026


Grok is facing growing international backlash for allowing users to create and share sexualised pictures of women and children using simple text prompts.

 - Copyright AFP Shammi MEHRA

Alexandra BACON

UK media regulator Ofcom on Monday launched a formal investigation into Elon Musk’s X over its AI chatbot Grok’s image creation feature that has been used to produce sexualised deepfakes.

Grok is facing growing international backlash for allowing users to create and share sexualised pictures of women and children using simple text prompts.

Ofcom described the reports as “deeply concerning”.

It said in a statement that the undressed images of people “may amount to intimate image abuse or pornography — and sexualised images of children… may amount to child sexual abuse material”.

Prime Minister Keir Starmer’s office welcomed the investigation, saying that Ofcom “has our full support to take any action it sees fit”.

A Downing Street spokesperson added: “We won’t hesitate to go further to protect children online and strengthen the law as needed.”

Ofcom said it had contacted X on January 5 asking it to explain the steps it has taken to protect UK users.

Without sharing details of the exchange, the regulator said that X responded within the given timeframe.

The formal investigation will determine whether X “failed to comply with its legal obligations”.

Contacted by AFP, X referred to a previous statement, which said: “We take action against illegal content on X… by removing it, permanently suspending accounts, and working with local governments and law enforcement as necessary.”

– Global backlash –

Under Britain’s Online Safety Act, which entered force in July, websites, social media and video-sharing platforms hosting potentially harmful content are required to implement strict age verification through tools such as facial imagery or credit card checks.

It is meanwhile illegal for media sites to create or share non-consensual intimate images, or child sexual abuse material, including sexual deepfakes created with AI.

Ofcom has the power to impose fines of 10 percent of worldwide revenue for breaches of these rules.

Grok appeared to deflect the international criticism with a new monetisation policy at the end of last week, posting on X that the tool was now “limited to paying subscribers”, alongside a link to a premium subscription.

Starmer condemned the move as an affront to victims and “not a solution”.

Musk brushed off the UK’s criticism this weekend, posting on X that “they just want to suppress free speech”.

On Saturday, Indonesia became the first country to deny all access to the tool, with Malaysia following suit Sunday.

The European Commission, which acts as the EU’s digital watchdog, has ordered X to retain all internal documents and data related to Grok until the end of 2026 in response to the uproar.

“We will not be outsourcing child protection and consent to Silicon Valley,” European Commission head Ursula von der Leyen said on Monday.

“If they don’t act, we will,” she added.

Malaysia, Indonesia become first to block Musk’s Grok over AI deepfakes

AP
January 12, 2026

Authorities in both countries acted over the weekend, citing concerns about non-consensual and sexual deepfakes

Regulators say existing controls cannot prevent fake pornographic content, especially involving women and minors

KUALA LUMPUR: Malaysia and Indonesia have become the first countries to block Grok, the artificial intelligence chatbot developed by Elon Musk’s xAI, after authorities said it was being misused to generate sexually explicit and non-consensual images.

The moves reflect growing global concern over generative AI tools that can produce realistic images, sound and text, while existing safeguards fail to prevent their abuse. The Grok chatbot, which is accessed through Musk’s social media platform X, has been criticized for generating manipulated images, including depictions of women in bikinis or sexually explicit poses, as well as images involving children.

Regulators in the two Southeast Asian nations said existing controls were not preventing the creation and spread of fake pornographic content, particularly involving women and minors. Indonesia’s government temporarily blocked access to Grok on Saturday, followed by Malaysia on Sunday.

“The government sees non-consensual sexual deepfakes as a serious violation of human rights, dignity and the safety of citizens in the digital space,” Indonesia’s Communication and Digital Affairs Minister Meutya Hafid said in a statement Saturday.

The ministry said the measure was intended to protect women, children and the broader community from fake pornographic content generated using AI.

Initial findings showed that Grok lacks effective safeguards to stop users from creating and distributing pornographic content based on real photos of Indonesian residents, Alexander Sabar, director general of digital space supervision, said in a separate statement. He said such practices risk violating privacy and image rights when photos are manipulated or shared without consent, causing psychological, social and reputational harm.

In Kuala Lumpur, the Malaysian Communications and Multimedia Commission ordered a temporary restriction on Grok on Sunday after what it said was “repeated misuse” of the tool to generate obscene, sexually explicit and non-consensual manipulated images, including content involving women and minors.

The regulator said notices issued this month to X Corp. and xAI demanding stronger safeguards drew responses that relied mainly on user reporting mechanisms.

“The restriction is imposed as a preventive and proportionate measure while legal and regulatory processes are ongoing,” it said, adding that access will remain blocked until effective safeguards are put in place.

Launched in 2023, Grok is free to use on X. Users can ask it questions on the social media platform and tag posts they’ve directly created or replies to posts from other users. Last summer the company added an image generator feature, Grok Imagine, that included a so-called “spicy mode” that can generate adult content.

The Southeast Asian restrictions come amid mounting scrutiny of Grok elsewhere, including in the European Union, Britain, India and France. Grok last week limited image generation and editing to paying users following a global backlash over sexualized deepfakes of people, but critics say it did not fully address the problem.

Opinion: The Russification of America — Capitalist heaven becomes criminal hell


By Paul Wallis

EDITOR AT LARGE

DIGITAL JOURNAL
January 11, 2026


People march during a protest in Minneapolis, Minnesota, after a US Immigration and Customs Enforcement (ICE) agent shot and killed an American woman

 - Copyright AFP Serhii Okunev

The current desiccation of America has a direct analogy in the Russia of the 1990s. The Soviet Union fell apart largely due to mismanagement and extreme corruption. It went ingloriously broke. Public assets were privatized in the form of stocks, and those stocks were instantly snatched up by big money. Russians had to sell their stocks to make ends meet as black markets exploded and prices skyrocketed to insane levels.

The Russian middle class was never as prevalent as the American middle class, but the result was an upper class with impregnable political protection. A police state effectively became a criminal state. The Bratva, aka the Russian Mafia, appeared in swarms.

This almost total vaporization of middle-class assets effectively funded the process of redesigning Russia into its current form. It gave huge cash cows to private interests. The Russian people went through a very bad time, even by their historical standards.

People did it very tough. They were selling heirlooms or whatever got them though. There was a drug called Krokodil, which produced some of the most bizarre effects of any known drug, including “flesh-eating” effects. You can’t see the more gruesome effects on safe search, but they included literal holes in people’s limbs.

This absolute disintegration of Russian society was barely reported in the West. In Russia, the Russians seem to have soon longed for the good old police state. Nothing like a gulag to make you feel nostalgic.

The less idealistic Russians did what most people do in tough times. They went for money and had to deal with the guys with the guns and gangs. The result is modern Russia, a completely opaque state ruled entirely and thuggishly entirely from the top down.

The very big money went upwards and the oppression went downwards. The laws favoured the top and too bad about anyone else. There was no protection from the new Russia. The news also came from the top down, a sort of trickle-down oppression.

OK. America and Russia were hardly identical twins at any point in their histories. The American middle class had far more assets than Russia as a nation. America, for all its faults, also had a working democracy, something Russia has never had.

The analogy holds up in one undeniable form. In the US, money is and always has been an insider’s game. Connections matter. This economic model is basically the same thing,

The US Robber Barons have simply been replaced by hedge funds, corporate deals, political and other criminals with publicists, and a lot of money laundering. The political process is all about money.

If who does what is different in America compared to who does what in Russia, it’s the exact same things being done. It’s an unmistakable pattern, and it works.

The only real difference is in definitions. In Russia, “free enterprise” is whatever the government says it is. In the US, it’s whatever the big money says it is. What a coincidence. There’s a wholesome supply of piggish goons and executive excrement to enforce it.

Meanwhile, the US has gone backward and downward fast. The expression “Third World America” used to be an almost-joke. Now, it’s inexcusably normal. America has been turned into a Russified version of hell. Not a lot of “greatness” to be seen. The distribution of US wealth is now far beyond obscene.

Libertarians and conservatives should note that this is also the exact diametric opposite of the US in its heyday. So should economists who are supposed to be able to read and write.

The pitiful litany of America’s disasters doesn’t need reciting. It needs fixing.

This is the antithesis of America.

________________________________________________________________

Disclaimer
The opinions expressed in this Op-Ed are those of the author. They do not purport to reflect the opinions or views of the Digital Journal or its members.

Wildfires spread to 15,000 hectares in Argentine Patagonia

By AFP
January 11, 2026


Firefighters battle to extinguish a bushfire in Chubut province of Argentina's Patagonian region - Copyright AFP Gonzalo KEOGAN, Gonzalo KEOGAN

Forest fires in southern Argentina have scorched more than 15,000 hectares (37,000 acres) this week, authorities said, though rain began falling in parts of Patagonia on Sunday to the relief of residents.

The largest blaze, burning since Monday near the small town of Epuyen in the Andes, has charred some 11,980 hectares, the Chubut provincial fire service said in a statement.

Another fire of unspecified size is burning nearby in the Los Alerces National Park.

Firefighters are also battling to contain another two fires in Chubut and neighboring Santa Cruz provinces that have burned some 3,800 hectares, Argentina’s emergency management agency said.

On Sunday afternoon, rain fell in some parts of the region, to the relief of residents like Atilla Missura, a 59-year-old who leads horseback tours.

“We are very happy; hopefully it will stay this way,” Missura told AFP by telephone from Rincon de Lobos, one of the most affected areas.

More than 500 firefighters, rescuers, police officers, and support personnel were combating the blazes, while dozens of local people supported operations on the front lines.

The governor of Chubut, Ignacio Torres, said in a radio interview that the situation in the area was “calmer” on Sunday morning but it “remains very critical.”

Torres urged people “never again to downplay the implications of climate change” and emphasized that the province is experiencing “the worst drought since 1965.”

A volunteer firefighter working near Epuyen was in intensive care due to severe burns, health authorities told local media.

Approximately 3,000 tourists have been evacuated from the area in recent days, and at least 10 homes have been destroyed by the fire, Torres said.

The region lost 32,000 hectares to wildfires in early 2025.


Scores of homes razed, one dead in Australian bushfires


By AFP
January 11, 2026


A bushfire burning in the Mount Lawson State Park, 25 kilometres west of Walwa, Victoria state - Copyright AFP Luis TATO

Bushfires have razed hundreds of buildings across southeast Australia, authorities said Sunday, as they confirmed the first death from the disaster.

Temperatures soared past 40C as a heatwave blanketed the state of Victoria, sparking dozens of blazes that ripped through more than 300,000 hectares (740,000 acres) combined.

Fire crews tallied the damage as conditions eased on Sunday. A day earlier, authorities had declared a state of disaster.

Emergency Management Commissioner Tim Wiebusch said over 300 buildings had burned to the ground, a figure that includes sheds and other structures on rural properties.

More than 70 houses had been destroyed, he said, alongside huge swathes of farming land and native forest.

“We’re starting to see some of our conditions ease,” he told reporters.

“And that means firefighters are able to start getting on top of some of the fires that we still have in our landscape.”

Police said one person had died in a bushfire near the town of Longwood, about two hours’ drive north of state capital Melbourne.

“This really takes all the wind out of our sails,” said Chris Hardman from Forest Fire Management Victoria.

“We really feel for the local community there and the family, friends and loved ones of the person that is deceased,” he told national broadcaster ABC.

Photos taken this week showed the night sky glowing orange as the fire near Longwood tore through bushland.

“There were embers falling everywhere. It was terrifying,” cattle farmer Scott Purcell told ABC.

Another bushfire near the small town of Walwa crackled with lightning as it radiated enough heat to form a localised thunderstorm.

Hundreds of firefighters from across Australia have been called in to help.

Australian Prime Minister Anthony Albanese said he was talking with Canada and the United States for possible extra assistance.

Millions have this week sweltered through a heatwave blanketing much of Australia.

High temperatures and dry winds combined to form some of the most dangerous bushfire conditions since the “Black Summer” blazes.

The Black Summer bushfires raged across Australia’s eastern seaboard from late 2019 to early 2020, razing millions of hectares, destroying thousands of homes and blanketing cities in noxious smoke.

Australia’s climate has warmed by an average of 1.51C since 1910, researchers have found, fuelling increasingly frequent extreme weather patterns over both land and sea.

Australia remains one of the world’s largest producers and exporters of gas and coal, two key fossil fuels blamed for global heating.

BAN DEEP SEA MINING

Japan aims to dig deep-sea rare earths to reduce China dependence


By AFP
January 12, 2026


Japan's deep-sea drilling vessel, Chikyu is anchored at a pier in Shimizu port, Shizuoka prefecture on September 11, 2013 - Copyright AFP SAUL LOEB

A Japanese research vessel on Monday began a historic voyage to attempt to dig deep-sea rare earths at a depth of 6,000 metres to curb dependence on China.

Scientific drilling boat called the Chikyu left Shimizu Port in Shizuoka around 9:00 am (0000 GMT) for the remote island of Minami Torishima in the Pacific, where surrounding waters are believed to contain a rich trove of valuable minerals.

The test cruise comes as China — by far the world’s biggest supplier of rare earths — ramps up pressure on its neighbour after Prime Minister Sanae Takaichi suggested in November that Tokyo could react militarily to an attack on Taiwan.

Beijing claims self-ruled Taiwan as part of its territory and has vowed to seize it by force if necessary.

China has long used its dominance in rare earths for geopolitical leverage, including in its trade war with US President Donald Trump’s administration.

Chikyu’s voyage, delayed by one day due to bad weather, could lead to domestic production of rare earths, said Shoichi Ishii, programme director at the Cabinet Office.

“We are considering diversifying our procurement sources and avoiding excessive reliance on specific countries,” he told reporters at the port as the ship prepared to leave.

“One approach I believe could be pursued is establishing a process to achieve domestic production of rare earths,” he said.

Rare earths — 17 metals difficult to extract from the Earth’s crust — are used in everything from electric vehicles to hard drives, wind turbines and missiles.

The Japan Agency for Marine-Earth Science and Technology (JAMSTEC) has touted the test as the world’s first at such depths.

The area around Minami Torishima, which is in Japan’s economic waters, is estimated to contain more than 16 million tons of rare earths, which the Nikkei business daily says is the third-largest reserve globally.

These rich deposits contain an estimated 730 years’ worth of dysprosium, used in high-strength magnets in phones and electric cars, and 780 years’ worth of yttrium, used in lasers, Nikkei said.

“If Japan could successfully extract rare earths around Minami Torishima constantly, it will secure domestic supply chain for key industries,” Takahiro Kamisuna, research associate at The International Institute for Strategic Studies (IISS), told AFP.

“Likewise, it will be a key strategic asset for Takaichi’s government to significantly reduce the supply chain dependence on China.”

The cruise is scheduled to last until February 14.

Recent media reports said Beijing was delaying Japanese imports as well as rare-earth exports to Tokyo, as their two-month-old spat escalates.

China this month blocked exports to Japan of “dual-use” items with potential military uses, fuelling worries in Japan that Beijing could choke supplies of rare earths, some of which are included in China’s list of dual-use goods.

15,000 NY nurses stage largest-ever strike over conditions

By AFP
January 12, 2026


Nurses rallied outside Mount Sinai Hospital, one of the facilities affected by the strike in New York - Copyright AFP TIMOTHY A. CLARY

Some 15,000 nurses went on strike Monday in New York city at three large private hospital groups over pay and conditions.

Officials declared a state of emergency over the work stoppage which the New York State Nurses Association (NYSNA) said on its website came after months of bargaining for a new contract reached a deadlock.

The association says it is the largest strike by nurses in the city’s history.

Picket lines were set up at several private hospitals across New York including facilities of New York-Presbyterian, Montefiore Bronx, and Mount Sinai.

“Unfortunately, greedy hospital executives have decided to put profits above safe patient care and force nurses out on strike when we would rather be at the bedsides of our patients,” Nancy Hagans, NYSNA’s president, said.

“Hospital management refuses to address our most important issues — patient and nurse safety.”

New York’s Democratic socialist Mayor Zohran Mamdani rallied in support of the nurses Monday, saying “we know that during 9/11 it was nurses that tended to the wounded.”

“We know that during the global pandemic, it was nurses that came into work, even at the expense of their own health,” he said, wearing a red NYSNA scarf.

Mamdani called on all sides to “return immediately to the negotiating table and not leave. They must bargain in good faith.”

The hospital groups involved discharged or transferred a number patients, canceled some surgeries and drafted in temporary staff.

A Mount Sinai spokesperson told CBS News that “unfortunately, NYSNA decided to move forward with its strike while refusing to move on from its extreme economic demands, which we cannot agree to, but we are ready with 1,400 qualified and specialized nurses — and prepared to continue to provide safe patient care for as long as this strike lasts.”

Sanders Warns Powell Probe Part of Trump Plan to ‘Intimidate and Destroy’ All Critics

“We must not allow our great country, the United States of America, to become an authoritarian society.”

Sen. Bernie Sanders (I-Vt.) speaks at his Fighting Oligarchy Tour in Brooklyn, New York, on September 6, 2025.
(Photo by Selcuk Acar/Anadolu via Getty Images)


Brad Reed
Jan 12, 2026
COMMON DREAMS


Sen. Bernie Sanders on Monday warned that the Trump administration’s targeting of Federal Reserve Chairman Jerome Powell for criminal investigation was part of a broader pattern of intimidation aimed at quelling dissent.

In a prepared statement, Sanders (I-Vt.) acknowledged that he had his own disagreements with Powell, a conservative Republican who was first appointed by President Donald Trump to be chairman of the Federal Reserve in 2017.

However, Sanders said political disagreements had nothing to do with the Department of Justice launching a criminal probe of Powell.

“In a democracy, debate and disagreement are normal,” Sanders said. “But Donald Trump does not ‘disagree’ with his opponents. In his pursuit of absolute power, he attempts to destroy anyone who stands in his way. He’s actively prosecuting Powell not because the Fed chair broke the law, but because he won’t bend the knee to Donald Trump.”

Sanders noted that Powell was only the latest target of the Trump administration’s vindictive retribution.

“When Sen. Mark Kelly (R-Ariz.) spoke out against Donald Trump’s authoritarian rhetoric and threats toward political opponents, Trump didn’t agree,” Sanders explained. “He had his Defense Department investigate Kelly for misconduct and threatened to have him executed.”

Sanders also pointed to the prosecutions of New York Attorney General Letitia James and former FBI Director James Comey, as well as his threats against assorted other critics, as evidence that Trump seeks to “intimidate and destroy... as part of his march to authoritarianism.”

“We must not allow our great country, the United States of America, to become an authoritarian society,” Sanders concluded. “Trump’s persecution of his political opponents must end.”

The co-chairs of the Not Above the Law coalition–Lisa Gilbert, co-president of Public Citizen; Praveen Fernandes, vice president of the Constitutional Accountability Center; Kelsey Herbert, campaign director at MoveOn; and Brett Edkins, managing director for policy and political affairs at Stand Up America—also denounced the investigation into Powell as politically motivated on Monday, while arguing it was part of an effort to stifle dissent in the US.

“Whether targeting federal judges, members of Congress, civil society organizations, or now the chair of the Federal Reserve, Trump weaponizes the full force of government against anyone who won’t submit to his will,” they said. “Undermining the Federal Reserve threatens Americans’ jobs and savings, and our nation’s economy.”

Backlash Builds Against Trump DOJ’s ‘Unprecedented’ Investigation of US Federal Reserve Chairman

“If the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer.”

Sen. Lisa Murkowski (R-Alaska) arrives in the US Capitol for a vote on Wednesday, January 7, 2026.
(Photo by Bill Clark/CQ-Roll Call, Inc via Getty Images)

Brad Reed
Jan 12, 2026
COMMON DREAMS

The US Department of Justice’s decision to open a criminal investigation into Federal Reserve Chairman Jerome Powell has ignited a major backlash that even has some Republican senators drawing a line in the sand.

Shortly after Powell released a video on Sunday accusing the Department of Justice (DOJ) of waging an “intimidation” campaign against him on behalf of President Donald Trump, Sen. Thom Tillis (R-NC) blasted the administration, accusing them of trying to compromise the independence of America’s central bank.

“If there were any remaining doubt whether advisers within the Trump administration are actively pushing to end the independence of the Federal Reserve, there should now be none,” said Tillis, who further vowed to “oppose the confirmation of any nominee for the Fed—including the upcoming Fed chair vacancy—until this legal matter is fully resolved.”

On Monday, Sen. Lisa Murkowski (R-Alaska) backed up Tillis’ pledge to oppose any nominees for the Federal Reserve until the criminal probe of Powell, whose term as Fed chair is due to end in May, has been resolved.

Murkowski also revealed that she spoke with Powell and determined that “it’s clear the administration’s investigation is nothing more than an attempt at coercion” aimed at affecting his decisions on US monetary policy.

“The stakes are too high to look the other way,” Murkowski emphasized. “If the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer.”

Trump can only afford to lose the support of four Republican senators in a vote for a new Fed chair, which means Tillis and Murkowski’s vows not to support any nominee until the case against Powell is resolved carry significant weight.

A bipartisan group of economists who have served under US presidents dating back to Ronald Reagan—including former Federal Reserve Chairs Alan Greenspan, Ben Bernanke, and Janet Yellin—released a joint statement on Monday denouncing what they described as an effort to strong-arm the Federal Reserve into doing the president’s bidding.

“The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine... independence,” they wrote. “This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly. It has no place in the United States, whose greatest strength is the rule of law, which is at the foundation of our economic success.”

Trump, who nominated Powell to be Federal Reserve chairman in 2017, has been openly pressuring Powell for months to more aggressively cut interest rates in the face of a faltering jobs market.

Powell, however, has continued to take a more cautious approach, and has cited the price instability caused by Trump’s tariffs as a reason to hold off on more aggressive rate cuts.

Jerome Powell: The careful Fed chair standing firm against Trump


By AFP
January 12, 2026


US Federal Reserve Chair Jerome Powell has avoided confrontation despite President Donald Trump's attacks, but he made a rare forceful response in the face of a criminal investigation - Copyright AFP/File SAUL LOEB

Beiyi SEOW

US Federal Reserve Chair Jerome Powell has generally avoided escalation in the face of Donald Trump’s relentless criticism — but in recent months, the central banker has become a rare figure to publicly resist his attacks.

The change of tack was especially pronounced on Sunday night, when Powell accused the Trump administration of threatening him with prosecution to push the Fed into cutting interest rates. He warned that a new Department of Justice investigation targeting him was a threat to the central bank’s independence.

“What made the statement so powerful is how rare it is,” Jason Furman, a top economic adviser to former US president Barack Obama, told AFP.

“A year ago, Powell got a question about Donald Trump and the Fed, and gave a one-word answer,” added Furman, now a professor at Harvard University. “He has not wanted to be baited into a fight.”

The fact that Powell felt the need to respond forcefully now “conveys just how serious the issue is,” Furman said.

Powell, a 72-year-old former investment banker, took the helm at the Fed in 2018 after he was tapped by Trump to replace Janet Yellen. It was Trump’s first presidency.

Powell then withstood months of withering attacks from Trump for raising interest rates.

When Covid-19 took hold in 2020, the Fed rapidly slashed its benchmark rate to zero and rolled out new support measures, moves that helped to prevent a more severe downturn.

His tenure won him praise and criticism from all sides as he maintained the central bank’s independence.

Over that tumultuous period, Powell, who is also called “Jay,” managed to forge consensus among the diverse members of the Fed’s rate-setting committee.

In 2021, the wealthy Republican with no formal economics training was nominated by Democratic President Joe Biden to lead the Fed for a second term.

He proceeded to oversee a series of sharp rate hikes in 2022 to curb surging inflation after the pandemic, before beginning to cautiously lower rates again in 2024 and 2025 as he eyed the price effects from Trump’s sweeping new tariffs.

– ‘The guy who stood up’ –

Less than a year before his time as Fed chair expires in May 2026, however, Powell has again come under fire as Trump lashes out at him for not lowering interest rates more aggressively.

Trump, now in his second presidency, has called Powell a “numbskull” and “moron,” and in July went so far as to suggest he could be dismissed for “fraud” over the handling of a $2.5 billion renovation project at the Fed’s headquarters.

Since Trump returned to the White House, Powell has proven willing to compromise in certain areas, such as by pulling back on the Fed’s work on climate change.

But “Trump pushed him too far this time, and he came out with all guns blazing,” Brookings senior fellow David Wessel said of the Fed chief’s sharp rebuke of the Justice Department probe.

Wessel expects the forceful response will cement Powell’s legacy as “a Fed chair with a spine.”

“He will be seen as the guy who stood up for the independence of the Fed, and the rule of law,” Wessel told AFP.

Already, Powell made headlines when he appeared with Trump in July as the president toured the under-renovation Fed buildings while criticizing cost overruns.

In a brief exchange in front of reporters, Powell corrected Trump in real-time as the president claimed the price tag for the revamp had ballooned to $3.1 billion.

The usually stoic Fed chair was seen shaking his head on camera while Trump spoke, and responding: “I haven’t heard that from anybody.”

Prior to his appointment to the central bank in 2012 by then-president Obama, Powell was a scholar at the Bipartisan Policy Center think tank.

The native of Washington served in the Treasury Department, in charge of financial institutions, for a brief period under Republican President George H.W. Bush.

Powell says Federal Reserve subpoenaed by US Justice Department


By AFP
January 11, 2026


The US president has criticized Fed Chair Jerome Powell for cost overruns for renovation of the Fed's Washington headquarters - Copyright AFP ANDREW CABALLERO-REYNOLDS

Federal Reserve Chairman Jerome Powell said Sunday that the central bank had been subpoenaed by the US Justice Department, blasting the move as part of President Donald Trump’s extraordinary pressure campaign on US monetary policy decisions.

Powell added in a statement that the bank received grand jury subpoenas “threatening a criminal indictment” on Friday related to his Senate testimony in June, which had been about a major renovation project of Federal Reserve office buildings.

He dismissed the possible threat of indictment over his testimony or the renovation project as “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,” Powell said.

“This unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Powell said.

The Fed has a dual mandate to keep prices stable and unemployment low, and its main tool in doing so is by setting a key interest rate that influences the cost of borrowing across the economy.

Trump has consistently pressured Powell and the central bank to move faster in lowering interest rates, in a breach of the long-standing independence of the institution.

Trump on Sunday denied any knowledge of the Justice Department’s investigation into the Federal Reserve.

“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,” NBC quoted Trump as saying.



– ‘Corrupt takeover’ –



Senators from both sides of the aisle blasted the investigation.

“It is now the independence and credibility of the Department of Justice that are in question,” Republican Thom Tillis said.

“I will oppose the confirmation of any nominee for the Fed — including the upcoming Fed Chair vacancy — until this legal matter is fully resolved,” he added.

Democrat Elizabeth Warren accused Trump of trying “to complete his corrupt takeover” of the central bank by pushing Powell out and installing a “sock puppet” instead.

Powell’s term as chairman of the Federal Reserve ends in May, and Trump told Politico in an interview last month that he would judge Powell’s successor on whether they immediately cut rates.

The US president has openly spoken about ousting Powell but stopped short of doing so, and focused instead on cost overruns for renovation of the Fed’s Washington headquarters.

In July, the cost of the Fed’s facelift of its 88-year-old Washington headquarters and a neighboring building were up by $600 million from an initial $1.9 billion estimate.

That month, Trump made an unusual visit to the construction site during which the two men, clad in hard hats, bickered over the price tag for the makeover.

A significant driver of the cost is security, including blast-resistant windows and measures to prevent the building from collapsing in the event of an explosion.

The Federal Reserve, the world’s most important central bank, makes independent monetary policy decisions and its board members typically serve under both Republican and Democratic presidents

Trump warned Fed fight poised to backfire spectacularly from GOP Senate leader

Matthew Chapman
January 12, 2026 
RAW ST0RY



Senate Majority Leader John Thune (R-SD) walks on the day of the Senate Republicans' weekly policy lunch on Capitol Hill in Washington, D.C., U.S., February 19, 2025. REUTERS/Kent Nishimura

The Trump administration's move to criminally investigate the chair of the Federal Reserve could blow up in President Donald Trump's face in a big way, Senate Majority Leader John Thune (R-SD) indicated on Monday.

Specifically, Thune told Semafor's Burgess Everett, the legal threat against Jerome Powell could make it "challenging" to confirm any additional nominees Trump would make to the Fed, because it adds extra difficulty in establishing that such nominees could make monetary policy decisions independent of White House influence.

"We want to make sure that there is a good continuity, and that the central bank maintains its independence," Thune said. "I want to see them operate in an independent way, free of politics."

The Fed has long observed strict policy independence to ensure politicians cannot pressure or threaten the central bank to manipulate monetary policy in ways that benefit their finances or election prospects, which could harm the overall economy or trigger runaway inflation by eroding investor trust in U.S. currency.

The investigation stems from allegations, first made by Trump's Federal Housing Finance Agency director Bill Pulte, that Powell lied to Congress about the scope and cost of a $2.5 billion renovation at the Federal Reserve building in Washington, D.C. Pulte has similarly made accusations that various other critics of the president have committed mortgage fraud, prompting accusations he is abusing his office to fabricate charges against Trump's enemies.

Powell, who was himself appointed by Trump in his first term, has categorically denied there was any effort to mislead Congress about the office renovation. He has further taken the extraordinary step of publicly accusing the Trump administration of using the Justice Department to intimidate the Fed into additional interest rate cuts.

“I have deep respect for the rule of law and for accountability in our democracy. No one — certainly not the chair of the Federal Reserve — is above the law,” Powell stated in a newly released video. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”

The attack on the Fed has already created sharp fault lines in the Republican Party. Sen. Thom Tillis (R-NC), who sits on the Senate Banking Committee, has already vowed to block any Fed nominee, including Powell's replacement, "until this legal matter is fully resolved." And even Trump's own Secretary of the Treasury, Scott Bessent, has reportedly warned the president that prosecuting Powell could destabilize financial markets.

.

Turning point? Canada’s tumultuous relationship with China

Canada’s Prime Minister Mark Carney will visit China from Tuesday to Saturday


By AFP
January 11, 2026


Canada's Prime Minister Mark Carney welcomed a reset in ties with China - Copyright AFP JUNG Yeon-je

Canadian Prime Minister Mark Carney will head to Beijing on Tuesday to meet with Chinese leader Xi Jinping, hoping for closer ties as he looks to reduce his country’s dependence on the United States.

The trip will be the first by a Canadian leader in almost a decade, as the two sides seek to turn the page on a series of diplomatic spats.

Here is why the visit is significant and what it could mean for China-Canada relations:

– Big deal –

Carney will visit China from Tuesday to Saturday, and is scheduled to meet with Xi and Premier Li Qiang, among other government and business leaders.

It will be Carney’s first official trip to China as prime minister, and the first visit by a Canadian leader to Beijing since Justin Trudeau’s in December 2017.

Canada’s relations with China have been among the worst of any Western nation. But Carney and Xi in late October held the first formal talks between the countries’ leaders since 2017, with the Chinese president inviting the Canadian to visit.

Carney’s visit will aim to “elevate engagement on trade, energy, agriculture, and international security”, his office said in a statement on Wednesday.

– Testy relations –

Ties fell into a deep freeze in 2018 after the arrest of the daughter of Huawei’s founder on a US warrant in Vancouver, and China’s retaliatory detention of two Canadians on espionage charges.

Ottawa and Beijing have also imposed tit-for-tat tariffs on each other’s products, including Canadian canola used to make cooking oil, animal feed and biodiesel.

Canada’s Prime Minister Mark Carney will visit China from Tuesday to Saturday – Copyright AFP/File Arif Kartono, ANDREW CABALLERO-REYNOLDS

Carney announced in July a 25 percent tariff on steel imports that contain steel melted and poured in China.

The following month, Beijing imposed a painful temporary customs duty of 75.8 percent on canola imports from Canada, which is among the world’s top producers of the crop.

China has also been accused of interfering in Canadian elections in recent years.

The G7, which Canada is a member of, in late October announced new projects aimed at reducing China’s dominance of critical mineral supply chains.

– ‘Turning point’ –

The first sign of warming ties came in late October with Xi and Carney’s meeting on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in October.

The Canadian premier called it a “turning point” in relations, and said he raised tricky topics such as the alleged Chinese interference in Canadian elections, saying it was “important to have that discussion” to get relations “back on track”.

The leaders discussed “respective sensitivities regarding issues including agriculture and agri-food products, such as canola, as well as seafood and electric vehicles”, according to a Canadian statement.

Meanwhile, Xi told Carney that China-Canada relations have “shown a recovery toward a trend of positive development” recently with joint efforts of both sides.

China was willing to work with Canada to bring relations “back to the right track”, Xi added.

– Cosying up to China –

While Canadian foreign policy has for years been hawkish towards China, US President Donald Trump’s mercurial trade policies and aggression towards allies could prompt a pivot.

The majority of US-Canada trade remains tariff-free, but Canada has been hit particularly hard by Trump’s global tariffs on steel, aluminium, vehicles and lumber — due to the interconnected nature of the neighbouring economies.

Trump also previously hiked tariffs on Canada by 10 percent over an anti-tariff ad campaign that featured late US president Ronald Reagan.

In October, Carney said Canada should double its non-US exports by 2035 to reduce reliance on the United States.

US-Canada trade was worth more than $900 billion in 2024, US government data showed.

Canada was also outraged by Trump’s calls last year for it to become the 51st US state.

With Canada and China both heavily targeted by Trump’s tariffs, Carney and Xi will likely try to dial down trade tensions between their two countries.

China is Canada’s second-largest trade partner, Carney’s office said, totalling C$118.7 billion ($85.5 billion) in two-way merchandise trade in 2024.

CANADA

How do health care professionals determine eligibility for MAiD?

(Medical Assistance in Dying)

Canadian Medical Association Journal

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How do health care professionals in Canada assess applicants for medical assistance in dying (MAiD)? A research article in CMAJ (Canadian Medical Association Journal) https://www.cmaj.ca/lookup/doi/10.1503/cmaj.251071 describes the careful approach currently used to determine eligibility, and an analysis article suggests an approach to eligibility assessments for advance requests for MAiD — which are currently available in Quebec and being considered elsewhere in Canada.

In 2021, Canada revised MAiD legislation to include eligibility for people who do not have a reasonably foreseeable natural death. This can include people with a serious, incurable illness, disease, or disability; who are in advanced, irreversible decline; and who have physical or psychological suffering that cannot be addressed to the person’s satisfaction. These people may be eligible for MAiD under Track 2; Track 1 includes those with a reasonably foreseeable natural death.

The study included interviews with 23 health care professionals who assess eligibility for MAiD in 4 Canadian provinces. Of these, 14 were physicians and 9 were nurse practitioners.

“Participants in this study provided nuanced accounts of the care and thoroughness that characterized these assessments and how they made the complex legal and moral decisions when reviewing an application for MAiD under Track 2,” writes Dr. Barbara Pesut, a professor at the University of British Columbia Okanagan’s School of Nursing, Kelowna, BC, with coauthors. “Alongside this individualized approach, assessors described a difficult process within their practice communities of developing a common understanding of the Track 2 MAiD legislation and a desire to ensure a consistent approach to determine eligibility.”

Assessors viewed the process and considerations to determine Track 2 eligibility as sometimes legally and morally complex. Understanding the patient’s life circumstances and support networks as well as their personal preferences were also important considerations when assessing for eligibility.

“Participants reported conducting their assessments carefully and thoroughly by taking a relational autonomy approach to assessment, determining capacity, managing the 90-day assessment period, and communicating a decision of eligibility. All providers involved in the care of those living with serious and irremediable conditions should seek to fully understand applicants’ suffering experience,” the authors conclude.

An analysis article https://www.cmaj.ca/lookup/doi/10.1503/cmaj.250562  suggests an approach that could be used to determine the presence of intolerable suffering for advance requests for MAiD by people with dementia.

“The assessor must confirm suffering is present, but this interpretation should be influenced by the patients’ values, wishes, and goals of care. This is a pragmatic approach that we consider to meet the concerns on both sides of the debate surrounding contemporary suffering,” write Drs. Timothy Holland, a family physician and head of the Bioethics Department at Dalhousie University in Halifax, NS, and Mathieu Moreau, a family physician working in palliative care, Bureau de l’éthique clinique, Université de Montréal, Que.

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Journal

Canadian Medical Association Journal

DOI

10.1503/cmaj.251071 

Method of Research

Survey

Subject of Research

People

Article Title

Assessors’ decision-making regarding applicant eligibility for Track 2 medical assistance in dying in Canada: a qualitative study

Article Publication Date

12-Jan-2026