Today in Politics, Bulletin 284. 1/12/26

… Sen. Mark Kelly (D-AZ) sued Pete Hegseth today seeking an injunction to prevent him from unilaterally moving forward to reduce his Navy rank and retirement pay for the video he made urging service members not to follow unlawful orders. From the lawsuit:

• "The First Amendment forbids the govt and its officials from punishing disfavored expression or retaliating against protected speech. That prohibition applies with particular force to legislators speaking on matters of public policy. As the Supreme Court held 60 years ago, the Constitution ‘requires that legislators be given the widest latitude to express their views on issues of policy,’ and the govt may not recharacterize protected speech as supposed incitement in order to punish it. The Secretary’s letter makes clear on its face that he is disciplining Senator Kelly solely for the content and viewpoint of his political speech.”

• “The Executive’s actions also trample on protections the Constitution singles out as essential to legislative independence. It appears that never in our nation’s history has the Executive Branch imposed military sanctions on a Member of Congress for engaging in disfavored political speech. Allowing that unprecedented step here would invert the constitutional structure by subordinating the Legislative Branch to executive discipline and chilling congressional oversight of the armed forces.”

• “Indeed, the topics described in Secretary Hegseth’s letter involved quintessential legislative and oversight activity. The letter cites statements about foundational principles of military law and concerns about potential commission of war crimes—areas squarely within the legislative and oversight jurisdiction of the committees on which Senator Kelly serves.”

… Or, as Heseth signed off on his social media post when he first announced his disciplinary investigation against Kelly: FAFO.

… MS NOW: “DOJ has fired the No. 2 official in the US Attorney’s office for the Eastern District of VA after he declined to lead the controversial prosecution of former FBI Director James Comey. Robert McBride, a DOJ prosecutor and former Navy lawyer, was brought into the prominent satellite office of DOJ to serve as first assistant to US Attorney Lindsey Halligan and took a more prominent role as her status was in question and after a judge ruled in late Nov. that she was not legally appointed to run the office.”

… NYT: “The US attorney’s office in DC has opened a criminal investigation into Jerome Powell, the Federal Reserve chair, over the central bank’s renovation of its Washington headquarters and whether Powell lied to Congress about the scope of the project. The inquiry, which includes an analysis of Powell’s public statements and an examination of spending records, was approved in Nov by Jeanine Pirro, a longtime ally of President Trump who was appointed to run the office last year.”

… “The investigation escalates Trump’s long-running feud with Powell, whom the president has continually attacked for resisting his demands to slash interest rates significantly. Powell, in a rare video message released by the Fed, acknowledged that DOJ had served the central bank with grand jury subpoenas days earlier.”

… When NBC asked Trump about the investigation, he claimed he had nothing to do with it: “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.”

… Sen. Thom Tillis (R-NC): “If there were any remaining doubt whether advisers within the Trump Admin are actively pushing to end the independence of the Federal Reserve, there should now be none. It is now the independence and credibility of DOJ that are in question. I will oppose the confirmation of any nominee for the Fed - including the upcoming Fed Chair vacancy - until this legal matter is fully resolved.”

… Tillis’s opposition is noteworthy because he is a member of the Senate Banking Committee where Republicans hold only a one-seat majority, so he can effectively block anything he wants by joining with committee Dems. This also shows why Trump has only been able to act because Republicans up to this point have refused to stop him.

… Sen. Lisa Murkowski (R-AK): “After speaking with Chair Powell this morning, it’s clear the admin’s investigation is nothing more than an attempt at coercion. If DOJ believes an investigation into Powell is warranted based on project cost overruns—which are not unusual—then Congress needs to investigate DOJ. The stakes are too high to look the other way: if the Fed loses its independence, the stability of our markets and the broader economy will suffer. Sen. Tillis is right in blocking any Fed nominees until this is resolved.”

… Banking committee ranking member Sen. Elizabeth Warren: “As Trump prepares to nominate a new Fed chair, he wants to push Jerome Powell off the Fed Board for good and install another sock puppet to complete his corrupt takeover of America’s central bank.”

… Powell: “This is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’ oversight role; the Fed, through testimony and other public disclosures, made every effort to keep Congress informed about the renovation project. Those are pretexts.”

… “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, but this unprecedented action should be seen in the broader context of the admin’s threats and ongoing pressure.”

… “I have served at the Federal Reserve under 4 admins, Republicans and Democrats alike. In every case, I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maximum employment. Public service sometimes requires standing firm in the face of threats. I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people.”

… Politico: Even a large swath of Republicans in the MAGA-friendly House were stunned. One senior House Republican: “Will they stop at nothing to force their way on everything? The admin is setting a standard they cannot achieve themselves and will haunt us all for a generation.”

… Rep. Don Bacon (R-NE): “I believe our system of justice works in the end. If this is lawfare, the judges and juries will see through it. On the surface, it does appears this is DOJ going after Powell. The independence of the Fed is vitally important.”

… Rep. Mike Lawler (R-NY): “While I fundamentally believe Chairman Powell was late in addressing inflation under Joe Biden and has been woefully slow in lowering interest rates over the past year, the independence of the Federal Reserve is paramount and I oppose any effort to pressure them into action.”

… Donald Kohn, former Fed Vice Chair: “It’s part of a campaign. Lisa Cook, Jay Powell. He’ll do anything to get control over the Federal Reserve. History tells us that when the independence of the central bank is compromised, bad things happen. It’s very worrisome.”

… Every former living Fed Chair (Bernanke, Greenspan, Yellen), bipartisan former Treasury Secretaries (Geithner, Paulson, others), and bipartisan former CEA Chairs (Hubbard, Mankiw, Romer, Furman), issued joint statement: The Federal Reserve’s independence and the public’s perception of that independence are critical for economic performance, including achieving the goals Congress has set for the Federal Reserve of stable prices, maximum employment, and moderate long-term interest rates.”

… “The reported criminal inquiry into Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine that independence. 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 US whose greatest strength is the rule of law, which is at the foundation of our economic success.”

… Harvard economics professor Jason Furman: “Some countries that have prosecuted or threatened to prosecute central bankers for the purpose of political intimidation or punishment for monetary policy decisions: Argentina, Russia, Turkey, Venezuela and Zimbabwe.”

… Rep. Ro Khanna (D-CA): The only reason Jerome Powell isn't lowering interest rates is because of Trump's irrational tariff policy. What Trump is doing threatens the very economic fabric and prosperity of this country.”

… Sen. Roger Marshall (R-KS) on Fox Business: Q - A lot of people are saying this Jerome Powell investigation is political. Marshall: I think this is the president almost trolling here. We got bigger issues to go after than this one though.”

… Karoline Leavitt was asked about it: Q - “Did the president ever direct DOJ officials to open an investigation into Powell? Leavitt: No. Q - Can you is reassure the American public that his long-standing criticism had nothing to do with it? Leavitt: The president has every right to criticize the fed chair.”

… Trump openly called for Powell to be fired and investigated many times.

… CBS asked WH economic adviser Kevin Hassett if he’s worried the investigation undermines the independence of the Fed and could destabilize markets: “I guess the question is, if you think the building cost $20 billion, or $10 billion, do you think at some point that it’s appropriate for the govt to investigate? And seems like DOJ has decided that they want to see what’s going on over there, with this building that’s massively more expensive than any building.”

… Punchbowl’s Brendan Pedersen responded: “Come on. The $10-20 billion figure that Hassett is floating here is insane. The figure as of July was $2.5 billion.”

… Kristi Noem posted this: “Drones represent the new frontier of American air superiority. Under President Trump, we are entering a new era to defend our air superiority to protect our borders and the interior of the US. With the creation of the DHS Program Executive Office for Unmanned Aircraft Systems and Counter-Unmanned Aircraft Systems, President Trump continues his historic legacy in developing American dominance.”

… Noem: “This will help us continue to secure the border and cripple the cartels, protect our infrastructure, and keep Americans safe as they attend festivities and events during a historic year of America’s 250th birthday and FIFA 2026.”

… ICE Drones coming to a city near you. What could go wrong?

… Rep. Pete Sessions (R-TX) on Newsmax: “This protesting that goes on - honking of horns, obstructing federal law enforcement - should not be tolerated. I stand completely with the administration on this effort.”

… Honking horns at ICE is now punishable by the death penalty.

… Karoline Leavitt did a press gaggle outside the WH: “There is plenty of video evidence to show that the officer was struck by the car, that this deranged lunatic woman was trying to ram him over with her vehicle and was was that vehicle as a weapon which justifies domestic terrorism.”

… Leavitt: “This admin will continue to stand wholeheartedly behind the men and women of ICE, including the officer in Minneapolis who was justified in using self-defense against the lunatic who was a part of an organized group to interject into and impede law enforcement organizations.”

… Leavitt then claimed that migrants were just a bunch of murderers, rapists and pedophiles: “It shows you where the modern-day democratic party stands today when they want to protect pedophiles over law-abiding American citizens and our the brave women and men who serve in law enforcement.”

… Leavitt: “All weekend you had agitators and violent citizens in the streets of Minneapolis protesting, protesting what, exactly? Apparently they are protesting the removal of heinous murderers.”

… Lovely woman. Bet she’s fun at parties.

… Rep. Sheri Biggs (R-SC) on Newsmax: Q - “Do you think it’s long past time for Tim Walz and Jacob Frey to be charged for clearly inciting violence against federal agents? Is there something Congress can do? Biggs: Well, I certainly hope so, and I hope that’ll be on the table for discussion this week. It’s un-American.”

… Republicans hate the First Amendment.

… House Minority Leader Hakeem Jeffries was asked whether Democrats will support the new DHS supplemental funding bill: "Clearly, there's some common sense measures that need to be put in place so that ICE can conduct itself in a manner that is at least consistent with every other law enforcement agency in the US. Instead, they're running around out of control with masks, no body cameras, no accountability, no warrants, arresting and in some cases deporting American citizens"

… Sen. Bernie Sanders: “I’m very worried that ICE is becoming a domestic army for Donald Trump. This goes way beyond immigration, it goes to a movement in this country toward authoritarianism and fear.”

… Trump had another press gaggle on Air Force One:

• On Renee Good: “That woman was very, very disrespectful to law enforcement.”

• He was asked what will happen if credit card companies ignore his demand in a Truth Social post that they reduce interest rates to 10% by Jan 20: “Then they are in violation of the law. Very severe things.”

• He was asked about the Exxon CEO saying that Venezuela was a terrible investment for oil companies: “I’d probably be inclined to keep Exxon out. I didn’t like their response. They’re playing too cute.”

• Q - Have you seen the Melania movie yet? Trump: I’ve seen pieces of it. It’s incredible. It’s going to be doing the premier at The Trump-Kennedy Center. It’s a very hard ticket. Everybody - Wayne Gretzky and his wife - everybody wants tickets.”

• Q - If the ACA extensions pass the Senate, would you veto it? Trump: “I might—yeah.”

… NYT asked Trump whether anti-discrimination laws passed during the 1960s, including the Civil Rights Act, were a positive thing for America: “A lot of people were very badly treated. White people were very badly treated, where they did extremely well and they were not invited to go into a university to college. So I would say in that way, I think it was unfair in certain cases. It hurt a lot of people - people that deserve to go to a college or deserve to get a job were unable to get a job. So it was a reverse discrimination.”

The first time we finally get a little pushback on Trump from a wide array of Republicans was on the Powell investigation. I don’t know if that is because they are finally getting tired of his mania and we are getting closer to the midterms, or if they just care more the banking industry than things like democracy and justice. I really don’t think that is going anywhere - it is just a typical Trump intimidation tactic.

If you missed yesterday’s Bulletin, you can find it here.

… WaPo: “Trump, openly fearful that a Congress controlled by Democrats could investigate him, impeach him and stymie his agenda, is using every tool he can find to try to influence the 2026 midterm elections and, if his party loses, sow doubt in their validity. Many of these endeavors go far beyond typical political persuasion, challenging long-established democratic norms.”

… “They include unprecedented demands that Republican state lawmakers redraw congressional districts before the constitutionally required 10-year schedule, the prosecution of political opponents, a push to toughen voter registration rules and