Marketplace Morning Report

President Trump’s growing frustration with the Federal Reserve’s commitment to political independence reached fever pitch over the weekend when Fed Chair Jerome Powell annouced the DOJ has opened a criminal investigation into the Fed. Powell called the probe “unprecedented” and said the Fed uses data, not politics, to make interest rate decisions. In this episode, we get context on the situation from economist Julia Coronado — including how the investigation could have an impact on financial markets.

Officially, the Federal Reserve is being investigated by the Justice Department over office building renovations. But in a video statement Sunday, Fed Chair Jerome Powell said the investigation, which includes a threat of criminal charges, is “a consequence” of the Fed maintaining its independence from President Trump. Plus, later in the episode, how the Warner Bros. deal could affect moviegoers — at home and in theaters.

From the BBC World Service: Recent college graduates say they’re struggling to find entry-level positions. How much of the job market squeeze can be blamed on AI? Plus: Malaysia and Indonesia block access to Elon Musk's AI chatbot Grok, Meta urges Australia to rethink its youth social media ban, and foreign ministers from Denmark and Greenland will meet with U.S. leaders.

According to the just-released December jobs report, only 50,000 people were hired last month, fewer than expected. Overall, the month capped off the slowest year for job creation since 2020 and the second slowest since 2009. Plus, LA fire survivors share personal items lost and found in the aftermath of the blaze.

Altadena residents eager to build more fire-resistant new homes run up against obstacles of expense, labor, availability of materials, and of course, the question of whether insurance will pay for it.