Transcript

Criminal Probe Into Fed Chair Powell, Homan's Warning on ICE, MN Fraud Admissions: AM Update 1/12

From Megyn Kelly · Episode page · Watch on YouTube

· 23 min · 3,740 words · 41 timestamped sections

This is the full, timestamped transcript of "Criminal Probe Into Fed Chair Powell, Homan's Warning on ICE, MN Fraud Admissions: AM Update 1/12", an episode of Megyn Kelly published January 12, 2026 (23 min, about 3,740 words). It mentions 8 people, works and ideas, including Donald Trump, Federal Reserve, Hurricanes, Ehan Omar, Jacob Frey.

What this episode is about

Federal Reserve Chairman Jerome Powell is under criminal investigation by the DOJ, amid rising tensions in Minnesota following a police shooting that has prompted calls for calmer rhetoric from lawmakers, including Tom Homan. Additionally, Minneapolis Mayor Jacob Fry has acknowledged significant issues with fraud in the city as federal intervention looms.

Key takeaways

  • Jerome Powell's legal woes: A Fed chair under fire could spark a rate-rise revolt amid political tensions.
  • In Minnesota, truth is a casualty. Misinformation fuels protests as facts remain tangled in political rhetoric.
  • The ICE shooting incident reveals a rift: perceptions clash with reality, sparking protests over conflicting narratives.
  • As Fed costs soar, Powell's congressional testimony is scrutinized, questioning accountability in financial oversight.
  • Trump's pressure on the Fed signifies the challenges of independence in monetary policy amidst executive influence.

Who speaks in this episode?

What is discussed, and when

  1. – 5:00: Federal Reserve, Donald Trump
  2. – 15:00: Donald Trump
  3. – 20:00: Donald Trump, Timothy Hawkins
  4. – 23:01: Hurricanes, Hooers

Notable quotes from "Criminal Probe Into Fed Chair Powell, Homan's Warning on ICE, MN Fraud Admissions: AM Update 1/12"

  • President Trump eyeing possible military action in two countries and the college football playoff championship teams are set featuring one of the most unique star players in years.
    about Donald Trump · at
  • Caches, supply routes, and other ISIS tied infrastructure. Central Command spokesman Captain Timothy Hawkins tells the New York Times, quote, The strikes today targeted ISIS…
    about Timothy Hawkins · at
  • The championship is set. The topranked Indiana Hooers will face the number 10 Miami Hurricanes next week in the college football playoffs. The Hooers are the breakout sensation…
    about Hurricanes · at

Who and what is mentioned in this episode?

People

Companies & orgs

  • Federal Reserve — Company · 5 mentions · first at
    It's Monday, January 12th, 2026, and this is your AM update. Federal Reserve Chairman Jerome Powell confirms he's under criminal investigation by the DOJ.
  • Hurricanes — Company · 3 mentions · first at
  • Hooers — Company · 1 mention · first at
    The championship is set. The topranked Indiana Hooers will face the number 10 Miami Hurricanes next week in the college football playoffs. The Hooers are the breakout sensation this season, one game away from the possibility of.
  • Armra — Company · 1 mention

Full transcript with timestamps

Good morning everyone. I'm Megan Kelly. It's Monday, January 12th, 2026, and this is your AM update. Federal Reserve Chairman Jerome Powell confirms he's under criminal investigation by the DOJ.

We got to stop the hate for Reddit. Saying this officer is a murderer is is dangerous. As state and local lawmakers inflamed tensions in Minnesota following the shooting death of a woman resisting arrest who was accelerating her car toward an ICE agent, orders are Tom Hman calling on the left to turn down the temperature.

Obviously, everybody could have done more to prevent fraud. That's a a fair point to make.

Minneapolis Mayor Jacob Fry forced to admit there's a real fraud problem in his city as the feds step in to fix it. President Trump eyeing possible military action in two countries and the college football playoff championship teams are set featuring one of the most unique star players in years. All that and more coming up in just a moment on your AM update. If your credit card balance is freaking you out after all the holiday spending, I mean, right? I have something that can save you money right now. You could cut your cell phone bill in half by switching to Pure Talk's saver plan.

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Prosecutors opening a criminal investigation into Federal Reserve Chairman Jerome Powell over statements regarding the renovation of the bank's DC headquarters. The New York Times reporting the inquiry approved by US Attorney for DC Janine Piro in November focuses on whether Powell lied to Congress about the scope of the project. In 2017, the Fed receiving approval for the work estimated to run about $1.7 billion. cost projections now climbing to about 2.5 billion. Powell last night in a video posted to social media looking rattled, confirming the probe and saying it's tied to his June congressional testimony. Powell says it's merely a pretext related to his fight with President Trump over interest rates.

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 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. 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. Since taking office last January, President Trump waging a public pressure campaign, urging the Fed to lower interest rates.

The Fed ultimately voting to lower rates three times last year. Each move criticized by President Trump as too late and not drastic enough. The Federal Reserve is a quasi independent body with a unique status, meaning the Fed chair, while nominated by the president, cannot be removed without cause. Concerns over ballooning costs of the Fed's headquarters reaching a fever pitch in July with President Trump visiting the construction site, criticizing the increasing costs and referring to it as quote sort of a fireable offense.

Powell's term as fed chair expires in May. At least 30 people arrested over the weekend in Minneapolis as residents take to the streets protesting ICE after an agent shot a woman resisting arrest as she accelerated her SUV toward the officer. State and local officials leaping to condemn the agent and ICE and continuing to misrepresent what actually happened. Minneapolis Mayor Jacob Fry, a Democrat, yesterday on NBC. The ICE agent was not run over as Trump stated. Uh you had a person that was definitively trying to just get out of there. They were trying to leave the scene. Uh that is not a person that's trying to run an ICE agent over. You have a person that is trying to protect our city to look out for our neighbors.

When there is debate about baseline facts, like for instance, did the ICE agent get run over? Guys, the answer is no. It didn't happen.

That agent is heard on tape exclaiming an alarm as the vehicle clearly hits him before he opened fire. A moment that is caught on video and audio. The agent, an Iraq war veteran, later seeking treatment at the hospital for a hip injury, which the mayor denigrated in a press conference. Quote, "He walked out of there with a hop in his step." Borders are Tom H. woman who spoke to the agent describing the impact of the incident Saturday on the Dr. Phil podcast.

He's concerned. He's he's know I've seen today his face all over social media. He's been doxed. People are threatening to kill him. Uh so he's not good. You know, he fears for him and his family. And uh again, let the invest let the investigation play out before you say you want to execute this man. Let the investigation play out. This officer is not in a good spot. emotionally for his family. Is he upset about what took place?

Of course he is. I mean, any law enforcement officer who uses any sort Look, I I've I've been around a long time. Even if it's it's less lethal force, if you have to put hands on somebody and take them down, it affects you.

Last week's incident marking the second encounter with a weaponized vehicle for that agent. An illegal alien child molester over the summer hitting the gas during an arrest, dragging the officer far down the road, causing injuries that required 33 stitches. Homeland Security Secretary Christy Gnome yesterday on CNN on the heightened risks immigration officials know they're facing.

We've seen vehicles weaponized over a hundred times in the last several months against our law enforcement officers. So they definitely know that the threat is real, that individuals who are trained by activists to go out and to impede their law enforcement operations will weaponize their vehicles and try to run them over and drag them and not stop. So they certainly go into these situations with that knowledge that that could happen. And that's what their training prepares them for.

Congresswoman Ilan Omar, a Democrat from Minnesota on CBS yesterday, seemingly encouraging more people to interfere in law enforcement operations. I think it is really important um for uh Americans uh to record um to create the level of accountability and transparency that we need. Uh we have what we have seen in Minneapolis is ICE agents oftent times jumping out uh of their cars. These are unmarked cars. Uh oftent times they're wearing a mask. Uh they're uh approaching um running towards cars. They're pulling people uh out of those cars. Often times these people are citizens. Often times these people have documentation um of their uh legal right uh to be in in this country. And we know that uh DHS has lied repeatedly um when it comes to these accounts. So it is even more important for there to be recording uh from eyewitnesses every single time these actions are taking place.

Mr. Hman yesterday on NBC pleading with the media and lawmakers to turn down the temperature.

We got to stop beher is is dangerous. It it's just ridiculous. It's just going to in it's going to infuriate people more, which means there's going to be more incidents like this because the hateful rhetoric is not only continuing now it's tripled down and doubled down. I'm I'm asking you to respond to the protesters who say they feel less safe less safe who say they're concerned for their neighbors

because you're looking at media reports and saying are terrorists or racists. They're they're the Nazis. They're listening to people saying that, you know, using the term disappearing people, it's because of the rhetoric, the hateful rhetoric. So that small population out there that's already half nuts. They hear this rhetoric ISIS races and and and and they're Nazis and they're disappearing people that empowers them to do stupid things. The recent federal surge into Minnesota motivated in part to investigate widespread fraud across the state's vast social welfare system. A plundering of taxpayer dollars that prosecutors estimate totals at least 9 billion across 14 Medicaid services. Amid the fallout, Minnesota Governor Tim Walls, a Democrat, in early January, dropping his re-election bid. NBC yesterday asking Minneapolis Mayor Jacob Fry, an emphatic critic of the Trump administration, if

he believes Governor Walls did enough to crack down on fraud. Well, look, Governor Walls is the reason that we've got paid family leave in Minnesota. He's the reason we've got free school lunches. uh him and I, we've been through thick and thin, but did he do enough to combat fraud, especially over these fines? Did he do enough to combat fraud?

Look, I look, obviously, everybody could have done more to prevent fraud. And I think that's a a fair point to make. He's setting up a whole bunch of infrastructure to do that. And by the way, look, the fraud's real. We've all got to acknowledge that the fraud is very real. And and by the way, when somebody commits fraud, you investigate it, you charge, you prosecute, uh, and yeah, you put the person in jail. As an individual, you you do not hold an entire community, any community, accountable for the actions of individuals.

The Trump administration instituting several measures to handle the fraud, including Medicare and Medicaid deferring funding for 14 programs pending review. HHS freezing some child care payments and requiring more verification of applicants. The Small Business Administration suspending nearly 7,000 borrowers from federal loan programs. The Agriculture Department requiring additional verification of food stamp applicants. The DOJ creating a new senior position dedicated to prosecuting fraud. and Treasury, investigating four money transfer firms for fraud, auditing certain banks for money laundering, and through the IRS, investigating nonprofits for alleged fraud during CO, just to name a few.

Congresswoman Omar, who represents Minneapolis and is herself a Somali immigrant, telling CBS the fraud problem is real, while taking issue with the Trump administration's approach to dealing with it, you know, by actually arresting criminals. Are you confident that the fraud that has been discovered is no longer being conducted now? Is there any justification for saying this food stamp money is is somehow being misused?

Yeah, there are ways to investigate fraud, which we have been doing in Minnesota, which the federal government has been doing under the Biden administration. There is no reason for them to use this level of rhetoric. There is no reason for them to fully stop these pro the funding these programs. The only reason they are doing that is for PR purposes and it is harming our state. It is harming my constituents and it is creating the kind of chaos and confusion that no [clears throat] one needs in this moment.

Treasury Secretary Scott Bessant traveling to Minnesota last week for a firstirhand look at the operations underway. Secretary Bessant telling Fox Thursday that in addition to the fraud crackdown on wrongdoers, Treasury will soon offer financial rewards to whistleblowers. Look, we we know that these rats will turn on each other. We we heard today that one one of the people who has been convicted of fraud. She was given $200,000 to bribe a juror. And she was so corrupt she skimmed 80,000 of it and only tried to give a $120,000 bribe. So, we are going to offer whistleblower uh payments to anyone who wants to tell us the who, what, when, where, and how this fraud has been done. And I think that that will give us a great leap forward on how to get it done.

Coming up, US foreign policy heating up across both hemispheres as President Trump reportedly weighs a number of possible military options from Iran to Greenland. and the final showdown in college football playoffs set for next week.

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out Islamic terrorism against our war fighters, prevent future attacks, and protect American and partner forces in the region. The latest wave of attacks coming after another large-scale strike in mid December that was in retaliation for an ISIS ambush that killed two US soldiers and a civilian interpreter." President Trump also weighing potential US involvement in Iran amid ongoing civilian protests against the theocratic regime. Protest began in Iran on December 28th following the collapse of the Iranian currency, reports the AP as international sanctions squeezed the economy. The intensity of the demonstrations ramping up in recent days as some Iranian protesters turned their attention directly on the Ayatollah, chanting quote death to the dictator in the streets. Earlier this month, President Trump posting to Truth Social, quote, "If Iran shoots and violently kills peaceful protesters, which is

their custom, the United States of America will come to their rescue. We are locked and loaded and ready to go." Mr. Trump following up in a Saturday post, quote, "Iran is looking at freedom, perhaps like never before. The USA stands ready to help." The BBC reports that it counted 180 body bags in footage from a morg near Thrron. One source telling the BBC, quote, "It's like a war zone. The streets are full of blood." The Wall Street Journal reporting President Trump is set to meet on Tuesday with senior officials, including Secretary of State Marco Rubio, Secretary of War Pete Hexath, and Joint Chiefs Chair Dan Raisen Kaine.

Last night from Air Force One, President Trump saying Iran is crossing his quote red line.

There seem to be some people killed that aren't supposed to be killed, but we're looking at it very seriously. the military is looking at it and uh we're looking at some very strong options.

President Trump also saying the Iranians are now ready to negotiate, but that the US may have to quote act before a meeting is set up. US officials will reportedly brief the president on options including quote boosting anti-government sources online, deploying secretive cyber weapons against Iranian military and civilian sites, placing more sanctions on the regime, and military strikes. Mr. Trump is not expected to make any final decisions on Tuesday, the Journal reports, as discussions are at an early stage. But with Trump, you never know.

Meanwhile, the Daily Mail reporting President Trump has ordered special operations commanders to draw up contingency plans tied to Greenland. The president ramping up his yearslong push to acquire the semiautonomous Danish island territory, citing national security concerns amid the growing presence of China and Russia in the Arctic. According to the report, Deputy Chief of Staff Steven Miller is driving the push for swift action emboldened by the recent successful US military operation that led to the capture of former Venezuelan leader Nicholas Maduro. The prospect of US control over Greenland, including the possible use of military force to make it happen, sending shock waves through the NATO alliance. Danish Prime Minister Meta Frederickson warning last week, quote, "If the US chooses to attack another NATO country militarily, then everything stops." The Telegraph reporting UK officials now coordinating with German

and French counterparts, drawing up plans to expand NATO forces on Greenland as a deterrent against China and Russia in the Arctic. This is a way of assuaging US concerns. The Telegraph reporting the EU is weighing possible sanctions on US companies if President Trump rejects NATO proposals, including possible restrictions on American tech companies and financial institutions. US officials are also discussing the possibility of offering direct payments to Greenlanders, encouraging support for independence from Denmark with a chance of joining the US, reports Reuters.

President Trump last night on Air Force One. Greenland should make the deal because Greenland does not want to see Russia or China take over. They don't go there. It's very far away from Greenland. And Greenland basically their defense is two dog sleds. Do you know that? You know what their defense is? Two dogs. We're talking about acquiring, not leasing, not having it short term. We're talking about acquiring.

That requires and if we don't do it, Russia or China will. And that's not going to happen when I'm president. Secretary Rubio, who has said the president's desire is to purchase Greenland, set to meet with his Danish counterpart this week to discuss the island's future. That ought to be fun. The championship is set. The topranked Indiana Hooers will face the number 10 Miami Hurricanes next week in the college football playoffs. The Hooers are the breakout sensation this season, one game away from the possibility of finishing out the season undefeated. At the center of it all, Heisman Trophy winning quarterback Fernando Mendoza with his earnest, often viral postgame interviews, including this moment immediately after Friday's 5622 win against Oregon, sealing the Hooser spot in the championship.

First of all, I want to give all the glory to God. I mean, the defense played fantastic. 28 points off of turnovers. The Hoggies always spectacular. and the man above up above did so much for us today and has helped myself and our entire team play such a high level. I couldn't have done this without God and this is just such a great opportunity for my entire team. Like Pakunga said, we're a bunch of misfits. There's zero five stars on our team. We're just a bunch of gritty guys who are glued together and going towards the tom goal, which is to win every each and single game. In a postgame presser, Mendoza offering insight into the team philosophy he says has led to their incredible season.

Yeah, I would say delayed gratification is a concept that, you know, was brought up by by stoicism and by the stoics and I think it's one of the greatest it's one of the greatest attributes. If you're able to have delayed gratification, discipline in yourself and discipline in your process and preparation, you're able to execute every single week like you know this play or this game is the national championship game. Like this game is the most important thing. And so I think that a lot of players and a lot of coaches and just everybody in Bloomington has done a great job of, you know, upholding that concept of delayed gratification and discipline throughout all aspects of our lives when there's a lot of distractions and, you know, especially with the Big 10 Championship and, you know, the Heisman, all other things. I think our team has done a great job of keeping that delayed gratification at the forefront.

One week from today, Mendoza will lead his team against the Hurricanes who come into the championship with 13 wins and two losses. Miami beating Miss 31 to27 last Thursday in a dramatic come from behind victory. Quarterback Carson Beck running in the game-winning touchdown with just 24 seconds left on the clock in the fourth quarter. The national title set for 7:30 p.m. East next Monday. The Hurricanes holding the home field advantage at Hard Rock Stadium in Miami. And that'll do it for a busy AM update. I'm Megan Kelly. Join me back here for the MK show live on SiriusXM's The Megan Kelly channel 111 at noon east on youtube.com/megan Kelly and on all podcast platforms.

Questions about this episode

Who speaks in "Criminal Probe Into Fed Chair Powell, Homan's Warning on ICE, MN Fraud Admissions: AM Update 1/12"?

Megan Kelly (Guest), Jerome Powell (Guest), Tom Homan (Guest), Jacob Fry (Guest), Ilan Omar (Guest), Christy Gnome (Guest), Scott Bessant (Guest).

What is "Criminal Probe Into Fed Chair Powell, Homan's Warning on ICE, MN Fraud Admissions: AM Update 1/12" about?

Federal Reserve Chairman Jerome Powell is under criminal investigation by the DOJ, amid rising tensions in Minnesota following a police shooting that has prompted calls for calmer rhetoric from lawmakers, including Tom Homan. Additionally, Minneapolis Mayor Jacob Fry has acknowledged significant issues with fraud in the city as federal intervention looms.

What is mentioned in this Megyn Kelly episode?

8 people, works and ideas are mentioned, including Donald Trump, Federal Reserve, Hurricanes, Ehan Omar, Jacob Frey, Timothy Hawkins. Each one on this page links to its own page with every episode that mentions it.

How long is "Criminal Probe Into Fed Chair Powell, Homan's Warning on ICE, MN Fraud Admissions: AM Update 1/12"?

The episode runs 23 min; the transcript is about 3,740 words in 41 timestamped sections.

More from Megyn Kelly

About this transcript: the episode's spoken words as captioned on YouTube, split into timestamped sections. Reclip.Me locates every person, work and idea in the text, keeps the time it is first named, and quotes the words around it verbatim. Last updated January 24, 2026.