Did Jerome Powell Lie to Congress? The Fed’s Palace, Politics & Rate Cuts | Anthony & John Pompliano - The Pomp Podcast Recap

Podcast: The Pomp Podcast

Published: 2026-01-13

Duration: 40 minutes

Guests: John Pompliano

Summary

The episode dissects Jerome Powell's controversial actions regarding the Federal Reserve and its impact on inflation, Bitcoin, and the financial markets. The Pompliano brothers also tackle the role of AI in economic deflation and the implications of the NYC token controversy.

What Happened

Jerome Powell's actions have sparked controversy, with investigations underway due to his alleged misleading of Congress and the Fed's opulent new building project, which critics argue is inappropriate given its struggles with inflation management. The investigation is not expected to lead to charges, as most such inquiries do not.

The Federal Reserve's approach to inflation is under scrutiny, with significant criticism of its data collection methods. Anthony Pompliano argues that the true inflation rate is closer to 1.7%, contrary to the reported 2.7%, due in part to deflationary pressures from AI and automation, such as Claude Code.

Interest rates are expected to fall as inflation decreases, suggesting a shift in Federal Reserve policy. This shift is occurring amidst political influences, highlighting the Fed's lack of true independence, as it remains subject to congressional oversight and political biases.

Bitcoin continues to be a hot topic, with its price hovering around $92,000 to $93,000. Anthony Pompliano emphasizes Bitcoin's role as a long-term protector of purchasing power, although its appeal as a hedge against chaos might decrease with increased global stability.

The episode also notes a generational shift in Bitcoin interest. While older millennials were drawn to Bitcoin due to the global financial crisis, younger generations, aged 18 to 22, seem less interested, possibly due to Bitcoin's decreased asymmetry in potential gains.

Eric Adams' NYC token controversy is examined, where liquidity issues and alleged losses of $2 to $3 million have sparked criticism. Despite this, Adams is credited with reducing crime in New York City, which complicates the narrative surrounding his involvement with the token.

The episode concludes with investment advice, emphasizing the importance of patience in the market and learning from financial losses. Anthony Pompliano recounts his own experience of turning a $9,000 investment into $72,000, only to lose most of it, as a lesson against speculation.

Key Insights

• Jerome Powell is under investigation for allegedly misleading Congress, but such inquiries rarely lead to charges. Critics also question the appropriateness of the Federal Reserve's new opulent building project amid inflation challenges.
• The Federal Reserve's reported inflation rate of 2.7% is contested, with arguments suggesting the true rate may be closer to 1.7% due to deflationary pressures from AI and automation technologies.
• Bitcoin's price is currently between $92,000 and $93,000, but its appeal as a hedge against chaos might decrease with increased global stability. There is also a noted generational shift in interest, with younger individuals showing less enthusiasm.
• Eric Adams faces criticism over the NYC token controversy, with alleged losses of $2 to $3 million, despite being credited with reducing crime in New York City. This duality complicates the narrative surrounding his involvement with the token.