Trump-Fed feud escalates
The feud between US President Donald Trump and the Federal Reserve escalated significantly this weekend, with federal prosecutors opening a criminal investigation into Fed Chair Jerome Powell over whether he lied to Congress about the scale of the central bank’s renovations. Powell responded with uncharacteristic fervor, saying, “This new threat is not about my testimony last June or the renovation,” but rather because he refused to heed Trump’s call to lower interest rates. Trump denied knowledge of the investigation, although he mentioned a possible lawsuit against Powell two weeks ago. The Trump administration’s actions are facing blowback from Senate lawmakers whose votes will be needed to confirm the next Fed chair: outgoing Sen. Thom Tillis pledged to block any successor until the current matter is resolved.
Iran cracks down on protesters, but open to US negotiations
Iranian authorities intensified a crackdown on demonstrators after protests hit a new peak on Friday night. Over 500 people have died and thousands have been arrested since the unrest began, according to a human rights group. Dozens of security personnel have also been killed in clashes. Whether the suppression has exacerbated or quelled the demonstrations is unclear, as an internet shutdown has limited the information coming out of Iran. Meanwhile, the United States is weighing a military response, which includes a possible aerial strike on several Iranian military targets. Iran’s foreign minister said he’s willing to negotiate with the Trump administration and is in contact with US special envoy Steve Witkoff. US President Donald Trump said yesterday that the White House is setting up a meeting with Iran, but added that the US “may have to act” before any such gathering.
Japan’s Prime Minister mulls snap elections
Japan’s Prime Minister Sanae Takaichi is considering calling a general election as early as next month, a political gamble that carries risk despite her personal popularity. While her approval ratings hovered around 70% last month, the popularity of her Liberal Democratic Party is far lower. The LDP, which has been in power in Japan almost continuously since 1955, lost 70 seats in late 2024 and, in October, lost its coalition partner Komeito, and its excellent get-out-the-vote operation. That rupture alone could put another 25 LDP lower house seats in jeopardy. By going to the polls now, Takaichi would be betting that this is the best time to capitalize on her own popularity to secure the parliamentary majority her party currently lacks, strengthening her mandate to pass a budget aimed at tackling Japan’s towering public debt.
