Trump is PREPARING to ARREST Jerome Powell | WTF

Holy smokes. I was just touring

properties with builders in Utah. And as

soon as I land, what do I hear? Oh my

gosh. Federal Reserve grand jury

indictment. Owl announcing via a video

posted Sunday night that they're

potentially facing criminal charges. And

he's describing this is all rigged

against him. This was not on my big

board. We need to break down exactly

what's going on. What are prosecutors

demanding? What is this set up? And what

is all of this about? and what does this

mean for markets? So, here's how we're

going to break this down. First, we're

going to talk about what a grand jury

indictment is. Then, we're going to talk

about some of the history between Trump

and the Federal Reserve. And then, we'll

end by touching on a little bit of these

renovations. First things first, you

have to understand what a grand jury

indictment is and like what are the

practical implications for this? Like,

how bad is it? I mean, obviously when

Powell posts a Sunday night video,

there's obviously got to be a problem

here. It can be. A grand jury indictment

is really a precursor to formal charges.

In other words, before a prosecutor like

the Department of Justice says, "Hey,

we're going to file a criminal complaint

against you." In other words, we're

going to bring charges against you and

we're going to arraign you and we're

going to arrest you. Before we do that,

we're going to collect some information.

Now, some of that information gathering

can be through what is often considered

a fishing expedition, which is basically

where you go to all the members of the

Federal Reserve Board and you say, "Hey,

you know what? Show me everything that's

on your laptop, everything that's on

your phone, all your texts, all your

chats, all your emails, anything you

have." And this is where oftent times we

make the joke, "Show me the man, and

I'll show you the crime." Now, in

fairness, this is what people have also

said about Donald Trump. And now Donald

Trump has the policeman hat on. So

Donald Trump is sort of playing

policeman going, "Huh, what can I get

against these guys?" Well, what a better

way than to issue a subpoena and

basically request all of your documents

over frankly the life of this

renovation, which would mean over the

last frankly about four to 5 years. Now,

this is basically saying, "Give me

everything and we're going to go through

everything and anything we don't like,

we're going to start firing people off

of the Federal Reserve Board or worse,

we're just going to arrest them after

they get arrested and we showcase their

faces. You know, Jerome Powell in

handcuffs or whatever, then we're going

to fire them and go, see, they're

getting arrested by the Department of

Justice. Guess we have to fire them for

cause. Donald Trump needs cause to fire

members of the Federal Reserve,

especially Trump Powell. He has not

found that cause yet, so he's going

fishing for it. Attorneys don't like

that word. Nobody likes a fishing

expedition looking for things. Usually,

subpoenas are supposed to be narrowly

tail tailored to we want your emails

that relate to renovations. But

oftentimes what they'll do is they'll

say, "We want all of your emails." And

if there's something else we don't like,

then we'll file charges against that

because now we've obtained them legally

because you gave them to us. Hence,

fishing expedition. In fact, there is a

joke when it comes to grand juries. It

is a very famous quote. It says that a

prosecutor can get a grand jury to

indict a ham sandwich. Uh the reason we

can indict a ham sandwich ham sandwich

uh is really because a grand jury just

looks at one-sided evidence and then

decides whether or not to bring charges

against well Jerome Powell. So frankly,

a grand jury is not a trial. It is not a

court. It is a group of people who

listen to a prosecutor's ideas for why

charges should be brought against a

person. And frankly, if a prosecutor

wants an indictment, they can usually

get it. So, in other words, this is bad

because yes, it means we could see

criminal charges and an arrest of Jerome

Powell or other members of the Federal

Reserve Board that Donald Trump just

doesn't like because he wants lower

interest rates. Now, we'll talk about

policy and market reactions in just a

moment. But remember, grand juries tend

to pick favorable evidence. Then, they

frame things in the way that they want,

and they don't really present anything

that hurts their case. They're usually

very vague presentations to get a grand

jury to say, "Well, I don't think you

got an argument." There is no defense.

There's no exculpatory evidence, which

would be something that could

potentially, you know, prove the

innocence of the person that we're

investigating. Uh, and a grand jury

doesn't decide guilt. They only say,

"Looks like there's enough to try and

check it out." That's really all a grand

jury is. It's very low bar. Problem is,

this is a distraction. It forces the

Federal Reserve to take time preparing

documents, responding to these

inquiries. It is an intervention into

the Federal Reserve. It also signals the

potential that if they see an email they

don't like, they're going to send the

FBI to Jerome Powell's house and they're

going to arrest him. A fishing

expedition

grand jury uh subpoena also creates the

risk of perjury. Oh, Powell, you said

this over here. That's different than

what's in this email. Now, that could be

rigged together because as is typical in

court cases, context is missing. That's

why we have trials. So, people clip

things together. Use that to file

charges. You file charges.

You file the charges. Even if you know

you're going to lose in court, you use

that charge to arrest Powell and others.

And then Powell has to prove his

innocence in court, which could take as

long as two years or longer. So in other

words, you could literally arrest Powell

and fire him. Powell would have to prove

his innocence over the next 2 years, but

he's long out of office. Donald Trump

has every, you know, the Federal Reserve

the way he wants it, which is a little

odd because, you know, we typically want

institutions to do the right thing.

Instead, when we get labor statistics

that Donald Trump doesn't like, the head

of the Bureau of Labor Statistics gets

fired. Gets fired. And wow, what a

surprise. The labor numbers have been

great lately.

Oh, when we start getting inflation

statistics we don't like, we're just

going to start stimulating the economy

some more by buying mortgage back

securities and issuing stimulus checks

to our veterans, which I'm not arguing

against issuing stimulus checks to our

veterans, but let's just say there are

some things the president is doing that

are quite inflationary. It's also

probably no surprise that the Supreme

Court is slow walking Donald Trump's

tariff ruling because I don't think it's

going to be favorable to Trump. But if

they sloww walk it, hey, it lets Trump

continue to do what he wants. But all

these things are really a topic for a

different video. And instead, what we

should really talk about is what Donald

Trump wants here. Donald Trump, as we

talked about in our mastermind this

weekend, and as we were exploring real

estate uh in Utah this weekend for House

Hack, I described that Donald Trump is

the adrenaline junkie. He wants to run

the economy hot. And I was specifically

asked, Kevin, can we avoid a recession?

And my answer was point blank, no, but

we can delay it. And Donald Trump and

his cronies want nothing more than to

delay the reckoning the economy faces

for as long as possible. Now, of course,

that's understandable. Myin has already

said the quiet part out loud, which is

exactly what I just said. They want to

run the economy hot to delay or

forestall, Myron's word, a recession.

The problem is when we scare the market

into making the market realize that you

can no longer trust the Bureau of Labor

Statistics. You can no longer trust the

fact that the SAM rule would have

triggered in October had we actually

collected the unemployment data. But

Donald Trump essentially forced a

shutdown so he could send Russ vote to

go fire a bunch of people and then blame

Democrats for it, which is essentially

exactly what happened. Usually you have

some negotiation, some give. He didn't

have that until six weeks, which is all

Donald Trump needed to hide the October

employment numbers when the federal uh

government had massive layoffs that

would have triggered the somber roll.

So, like a lot of people looking this

was the Schumer shutdown, Kevin. I mean,

come on. Where's your freaking hat? Oh,

don't worry.

I still got my hat. You know what

happens when I put the hat on, right?

The Schumer shutdown has caused the

[music] economy to shut down, which just

happens to enable Donald Trump to do

exactly what he wants because it's

Democrats fault. We are now published

error firing a bunch of people from

federal government positions including

rigging the government exactly the way

we want it. It's Democrat's fault. You

know that's that's the idea. Okay. So

the point is not to get pedantic here.

The point is just to say this is a

bullying tool. A grand jury indictment

is a bullying rule or tool. The problem

is you scare the market rates go up and

Federal Reserve independence is

questioned. Yes. Look, we all want lower

rates and we're going to talk about the

renovations in a moment. But here's the

thing. We do not want to repeat the

1970s. In the 1970s, we had a lack of

Federal Reserve independence. Arthur

Burns was a political shill and a hack

who led us to a vulkaring or a double

dip recession in 1980 and 199 1982. That

was because Arthur Burns sucked so much

and was a political hack and did

everything that the president wanted.

Nobody had the balls to say, "Bro, we

actually have to convince people that

inflation is too high and we need to

lower it." The funny thing about

inflation is it's all in our heads. If

we think prices are going to go up, we

go shopping today and we create the very

inflation we are afraid of. That is why

the Federal Reserve says we we will not

stop until we get inflation back to 2%.

They have to say that to make us feel

like they're doing their job. It's all

part of the manipulation. We're not

going to get a rate cut January 28th, my

birthday. Why? Because the economy,

according to the Atlanta Fed real GDP,

is running at over 5%.

We're running over 5%. Why would we get

a rate cut? So far, the job numbers

we've gotten, yeah, things are slowing

down. We know that, but the economy is

not falling off a cliff. S&P surveys,

ISM surveys say we're not falling off a

cliff. Uh the ADP labor data says we're

actually rebounding slightly. Challenger

jobs report says we're rebounded

slightly. Atlanta Fed real GDP is at

5.1%. Yes, the economy outside of

artificial intelligence has slowed down,

but we don't know if this is because

we're falling off a cliff or because

we're normalizing. And so, in fairness,

the Fed is trying to do their best. I

disagree with what the Fed does. I think

we're going into a disinflationary

period. We need substantially lower

rates. So, that means, ironically, I

agree with Donald Trump and Myin, but I

disagree in the way that they're going

about it. This is pure and simple

bullying and it creates a lack of

confidence in economies and it doesn't

really create short-term damage. It

creates long-term damage. Unfortunately,

much like tariffs, we probably won't see

all of the impact of the damage that's

caused by this. Let's hit everybody with

adrenaline shots, which in the long run

always causes damage. There's always a

side effect. There's a reason why when

you get shot with an EpiPen, Yeah. you

stay, you survive. your throat opens up,

your heart rate goes up, and you can

power through whatever shock you're

going through or allergic reaction

you're going through. There's a reason

you have to go to the hospital

afterwards. It's because there are side

effects that could also kill you.

Anyway, so let's understand prior

history a little bit. Federal Reserve

Governor Cougler abruptly resigned on

August 2025 or in August 2025. She was

supposedly going back to go teach at

Georgetown allegedly, but had no classes

on the calendar to go back to teaching.

Instead, some argued that Donald Trump

was about to make a case against her

because her husband made some stock

trades that she reversed after

disclosing and I guess there were some

delays or issues or whatever. And she

basically stepped down because she

didn't want to get Lisa cooked.

Anyway,

Cougler was not a fan of Trump. She was

not a Trump appointee. And Georgetown

happens to be an institution that's

really Trump friendly. Many of Trump are

alums of Georgetown, which means there's

clearly a relationship between

Georgetown and the Trump administration.

And we know that Trump is going after

universities and Georgetown just doesn't

want to be in the reticle. They don't

want the gun pointed at their face

going, "We're going to cut your freaking

funding if you don't somehow convince

Cougler to come back." So, we know they

rigged to get Cougler back. Now, in

fairness, after we got C after Cougler

stepped down, we got Myin. This bastard

actually replies to people on X, which

is crazy to me. But I've started to like

the guy. I don't know, maybe I'm being

manipulated, but I will say he's not as

much of a shill as I thought. I thought

Kevin Hasset was a shill. I know he's a

shill, frankly. Uh, I think that Kevin

Walsh is a Neither of them belong

at the Fed chair helm. I think Waller is

the best choice who actually has an

economic brain. Or pick Myin. You know,

Myin will shill for you all day long.

But I also think Myron's economic theory

is right and defensible. Yes, lower

rates can be done because of these

disinflationary forces. The Myron

strategy is a much better way to go for

lower rates than the Trump strategy.

We're going to arrest you and fire you,

right? Because that makes it seem like

Trump is being a dictator cuz he

freaking is. Anyway, Lisa Cook, mind

you, was beat up for doing the same

thing that Donald Trump did in the '9s.

Lisa Cook supposedly was allegedly

taking out two primary mortgages within,

you know, 6 weeks of each other. We saw

it. We went through the documents. She

alleges that one of them was for a

second home purchase, which is fair. We

wouldn't see that on the documents, but

it would align with a 10% down payment.

We went through all the documents. We we

made a whole video on it. But since

then, Donald Trump himself has had

allegations that he committed the same

mortgage fraud in the '90s for having

multiple primary residences. And there's

no vacation home argument because Donald

Trump just pretended that didn't happen.

And most media doesn't really want to

slam Donald Trump too hard because

they'll end up losing their media

licenses and access to the White House,

which none of this sets really good, you

know, feelings for long-term credibility

and transparency. Even though you're

we're told that Donald Trump is the most

transparent president ever, just happens

to only be transparent when it favors

him. But again, topic for a different

video. There are real long-term

implications to this, right? But anyway,

Lisa Cook stays. Couggler's out. We get

Myron. He's shilling for 150 basis

points of cuts. Waller shilling for 100

basis points of cuts. Mind you, that's

the correct move. It's just how Trump is

going about it isn't good. And of

course, Warsh is also shilling for cuts.

So, now we need to understand, but

Kevin, you know, what's going on with

these renovations? Like, you know, I is

is there potentially going to be some

kind of like fraud there or whatever? I

would argue if they're doing a grand

jury indictment, the answer to that is

yeah, this is what Donald Trump wants.

He'll stitch together any one-sided

narrative to go arrest Powell to make it

seem like Powell is a fraud. And Trump

is working for the American people, but

that's going to kill Federal Reserve

independence, which is literally what

caused the 1970s inflation. So,

long-term bad, short-term good. This is

not the way to go about it. Now, what

does Powell say and what's going on with

their renovations? Well, here for it.

Hear it for yourself.

>> Good evening.

On Friday, the Department of Justice

served the Federal Reserve with grand

jury subpoenas, threatening a criminal

indictment related to my testimony

before the Senate Banking Committee last

June.

>> Mind you, threatening, that's the whole

point. They are trying to get the Fed to

shake in their boots and make this

Sunday night video to go, "Hey, like

we're getting attacked here." Because

they want rate cuts. This is Trump's way

of doing it. This is how Trump fights.

Trump fights dirty. Some people are

like, "Good, man. Go Trump. Go Trump."

But this is a messed up institution to

do it with because if we self-fulfill

inflation, we're going to have a whole

lot bigger problems than just a little

dinky, you know, initial recession.

>> That testimony concerned in part a

multi-year project to renovate historic

Federal Reserve office buildings.

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

administration's threats and ongoing

pressure. This new threat, brilliant

statement by Powell. He's saying, "Make

sure to put in context all of the

bullying that we've had." Right?

Remember the bullying that we've had

with Donald Trump. When you hear this,

remember what Donald Trump said. Donald

Trump was asked, quote, "Will you fire

Powell?" What did Donald Trump says?

Highly unlikely,

unless there was fraud. You know, that

renovation they're doing, that's out of

hand. He's been setting up to fire

Powell for fraud. Russ Vote, the

director of the OM, has said the Federal

Reserve renovation included beehives,

rooftop gardens, VIP dining rooms. You

know, this is obviously all disputed,

but that's the point. They're just

trying to paint the picture because they

don't need to win the criminal

conviction. They just need enough to

arrest him. This is the start.

>> 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.

I have served at the Federal Reserve

under four administrations, 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. Thank you. Good job, Powell.

Like professionally said,

even if you don't like him, you got to

give him credit. He's digging in. I

respect that. Even if you don't like

Powell, respect. He stands up for what

he thinks is right. And honestly, there

are a lot of people today that

unfortunately don't. And the reason is

because they're worried about getting

fired. We're losing a government

contract. We're getting investigated by

the Trump administration.

Just the sad reality of unfortunately

the realm that we're in. But let's

understand this. Powell is standing

firm. Doesn't mean he can't get

arrested. You could get arrested and the

picture of this guy Powell in cuffs or

somebody else at the Fed in cuffs is all

you're going to need for Trump to go, "F

it. I'm firing him. And he puts in a

whole suite of new people at the Fed.

They might cut rates a lot. So what does

this mean in the short term?

Probably bad for the 10-year yield in

the short term because we're increasing

uncertainty. We increase inflation

fears. However, near-term rates might

fall because there might be an

increasing bet that whoever comes in

soon is going to tank short-term rates.

So what does that mean? short-term rate

down, long-term rate up. If you've

watched this channel, you've been

subscribed to the education you have on

this channel. I want you to answer this

question before I say it. I'm gonna say

it one more time. It's this a pop quiz.

You should freaking know this. You

should be screaming at your TV right now

going, I know what it is, okay?

Short-term down. Oh my gosh, they're

going to rig it. They're going to cut

rates. Long-term up because of inflation

fears. What does that do to the economy?

It stretches the

102 yield curve which makes the economy

more shockprone.

It makes us more prone to beginning a

recession.

Once we hit 125 basis points, we're

pretty much in it. This is why I've

always been a fan of be conservative.

Donald Trump is slamming these

adrenaline shots everywhere. The side

effects are coming. We must be careful.

Don't be bearish. You know, like I'm not

trying to be bearish. I think I'm

actually overall very very optimistic. I

mean, we were just masterminding about

the future of house hack and the spec

build that we're doing, what we're doing

with lending, what we're doing with

tokenization. Most of you haven't even

heard about that stuff. What we're

doing, it's insane what we're doing and

how bullish we are on America and and

technology and our AI, the AI that we

sell at reinvestorhouse.com.

Right? this is great quality stuff

that's just growing. We're seeing the

bleeding edge beta releases before you

even see it. And we're like, "Oh my

gosh, how could it keep getting better?"

Remember, you can get life lifetime

access over at househ house.com. But in

the short term, this creates substantial

uncertainty. Now, let's look at the

Federal Reserve for a moment because

they tell us a little bit about their

renovations, which Donald Trump tends to

merge between two different buildings,

the Eckles building and the Mariner

project. Like there are multiple

buildings around the Federal Reserve in

DC. The Federal Reserve is governed by

very clear oversight in DC about how

things should be built. It's basically

built in a swamp. I'm not here to defend

their spending. Some people say the

Federal Reserve spends money that they

have that they've created from market

operations because they used to run at a

profit. They're running at a little bit

of a loss now, but they made a lot of

money in the past. And so they have this

congressionally approved money that

they're spending in accordance with

essentially the disclosures that they've

made since then. They've made a v video

describing this. This is the

preservation of two historic buildings

that have not been renovated since their

construction in 1930. They're trying to

improve health and the safety uh of

these buildings. Very normal phrases.

Major structural work, bringing things

up to modern code. They're putting a

parking structure underneath the actual

office buildings, which is basically in

a swamp, which is very expensive. When

the two buildings are complete, the Fed

will be able to consolidate most of

their operations and actually reduce

costs. So, they're arguing that, hey, we

could have fewer staff. We could

actually save money over time. That's

why we need these renovations. Here's

the Eckles building, how we're

ventilating and renovating the project

right now. I would love to tour this. By

the way, if anybody at the Federal

Reserve is watching this, please as like

it's like a citizen journalist, I would

do anything and I will fly out there on

a moment's notice to go to DC and look

at the renovation. I'm a real estate

guy, you know, former licensed

contractor. I could not be more excited

to to like comment on this. These right

here, we've got structural uh uh these

are structural steel frames around the

windows, by the way, since we have block

walls over here. Well, brick walls. See

what else we can see. Concrete. These

look to be uh sort of more like historic

finishes or whatever. Um I mean just

various different Tyvec shots. These

aren't This isn't the best videography.

You know, they could do a lot better

here. So, they're showing a dirty

window. I don't know why they're showing

this. Oh, I guess they have like little

I forgot to read this crap over here.

Replace building utilities on their

useful life. Fair. Uh open historic

skylights to let more light in. Fine.

Protect and retain original boardroom

murals. Install safety catwalk.

Obviously, asbestous removal from

windows. I mean, between you and me,

this is freaking But like when

you're doing like a, you know,

government spending project, they do it

with these standards that are like way

overkill. Especially coaul isn't really

fryable. It's not going to get in your

lungs. But I guess when you're scraping

it off or sanding it off, yes, there's a

risk. You should be wearing P100s. Uh,

but you know, that's those aren't

expensive. Remove structurally on sound

floor to restore original skylight. uh

match elevator landing with conference

room floor height to improve

accessibility for people with

disabilities.

Location of vegetated roofs often

referred to as green roofs for storm

water management and energy efficiency.

So this is where you know VA vote calls

this a rooftop garden but there it's not

uncommon to vegetate flat roofs or put

something on a flat roof to actually

help insulate the building or minimize

the wear and tear to the very roof or to

manage storm runoff, whatever.

uh atrium roofing installed uh to help

expand usable safe uh space. Atrium roof

also designed to bring the building up

to safety standards in a cost-effective

way. Asbestous abatement, that's very

expensive to do it correctly. I was

certified to do asbesus abatement. Uh

all these skills, by the way, are great

for house hack. Like I've done so many

things in in just like my career where I

look at I'm like damn I keep reaching in

and I'm like that's useful, that's

useful, that's useful. That's so good. I

I just feel so excited about what we're

doing. Sorry. I get excited about

business. Convert a original garage to

office space. Restore existing

historical uh fountain consistent with

historic preservation guidelines. I keep

saying that cuz the historic societies

are very challenging. West Court atrium.

Additional reinforcing walls. Making

things safer. New utilities. Here's the

Constitution A building. That's a

different one. Restore terrace. The

underground garage. New garage space.

Reinforcing walls. Uh basement. restore

historic offices, blah blah blah blah

blah, new electrical equipment. This

stuff isn't expensive, you know,

whatever. New HVAC equipment installed.

When you're doing government public

works project stuff, it's it is very

expensive. I'm not here defending their

costs. I don't have a full audit of

their costs. I'm sure I can find a way

to save money on it. But the point is,

you know, Donald Trump's looking for

anything he can to bully these people.

You know, people say, "Oh, but Kevin,

you know, the Fed cut 50 right before

the election when Biden was elected or

uh Biden was up for election and Trump

won." Well, yes, but you also have to

understand because those of us who

watched the labor market and saw the SOM

rule get triggered knew it was

necessary. So, anyway, bottom line, this

increases the pressure of the market,

uncertainties uh in the market. It it

likely is going to increase the spread

on the 102 yields curve, which creates

gets us closer to recession. Shockprone.

It's not great. It's another like

adrenaline shock to short-term junkiness

that ends up with long-term

consequences. In my opinion, Donald

Trump should just stop effing with the

Fed and just focus on picking a new Fed

chair and just wait until Jerome Powell

leaves in May. Okay. The first post

Jerome Powell meeting will be in June.

So, just wait. It's not that long ago.

It's not that long away. But to screw

with the Federal Reserve's independence,

it's just a bad idea. I don't like it. I

don't support it. But here's all the

color you need. And um I'm going to

arrest my voice. Goodbye. Good luck. I

love you all. If you want my courses, my

alpha report that's coming out tomorrow,

go to meet.com. If you want my

artificial intelligence, go to house

hack.com. Check your email. If you got

approved, by the way, to invest in house

hack. You have time to fund. If you

already have your application in because

the broker dealer has been so

overwhelmed with getting all these

approvals done. So, uh check your make

sure you've uploaded your tax documents.

That's been a big uh thing that a lot of

people have forgotten. and you can't get

approved until you upload your tax

documents. So, we're just trying to be

transparent, as transparent as possible.

All right, folks. We'll see you next

one. Goodbye. Good.

>> Why not advertise [music] these things

that you told us here? I feel like

nobody else knows about this.

>> We'll we'll try a little advertising and

see how it goes.

>> Congratulations, man. You have [music]

done so much. People love you. People

look up to you.

>> Kevin Praath there, financial analyst

and YouTuber. Meet Kevin. Always great

to get your take.