Daily News — January 12, 2026

The Shakedown

While others stenograph, grift, or chase the next distraction—this is the news that matters and how it’s connected.

Jerome Powell didn’t cut interest rates fast enough. So the Department of Justice is threatening to put him in prison.

That’s what happened Friday. Grand jury subpoenas. Criminal investigation. The stated reason? Powell’s testimony about a building renovation.¹ The real reason? Powell said it himself: “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.”²

This is a shakedown. The pretext is a $2.5 billion headquarters renovation that a Republican congresswoman referred to DOJ back in July. The reality is that Trump has spent years attacking Powell for not cutting rates—and now his Justice Department, run by loyalists like Jeanine Pirro, is using criminal prosecution as leverage.³ Powell’s term ends in May. Every Fed chair who comes after him will know the score: follow orders, or face indictment.

Even Republicans are breaking. Senator Thom Tillis—a senior member of the Banking Committee—issued a statement that should alarm everyone: “If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none.” He’s now blocking all Trump Fed nominees until this is resolved. Senate Majority Leader Thune warned the probe “better be serious.”¹

It won’t be. It doesn’t have to be. The threat is the point. This is how you seize control of monetary policy—the power to print money, set borrowing costs, control inflation—without firing a shot. You just make clear what happens to anyone who defies the president.

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The Selective Sanctity of Protests

While the DOJ threatens Powell, Trump is threatening Iran. “We’ll start shooting” if they keep killing protesters, he warned.⁴ Today, he slapped 25% tariffs on any country doing business with Tehran.⁵

The death toll in Iran has climbed to at least 599—510 protesters, 89 security forces—with more than 10,600 detained.⁵ The regime has declared demonstrators “enemies of God,” a death penalty charge. This is a genuine atrocity.

But here’s the thing: five days ago, Trump’s ICE agent shot Renee Good in the head while she sat in her car. According to Minnesota Attorney General Keith Ellison, they’ve now occupied her city with thousands of agents—making warrantless arrests, using excessive force, shutting down schools, costing Minneapolis $2 million in police overtime in two days.6⁶

Iran kills protesters: “We’ll start shooting.” ICE kills protesters: “Self-defense.”

Even CNN—typically afraid to call this administration what it is—made the hypocrisy explicit: “Trump is pledging to ‘rescue’ protesters in Iran. He has a selective view of the sanctity of protests.”⁴

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Meanwhile...

Minneapolis: Ellison filed a lawsuit against DHS. He called it “a federal invasion” and declared “DHS is not above the law.” Here’s what he didn’t do: arrest anyone.

If federal agents are committing warrantless arrests—that’s kidnapping. If they’re using excessive force—that’s assault. If they killed Renee Good without legal justification—that’s murder. These are state crimes. Minnesota can prosecute them. Philadelphia’s DA Larry Krasner didn’t threaten paperwork—he promised prosecution: “Donald Trump cannot pardon you for a state court conviction.” Minnesota has the same power. Use it or lose it.

Venezuela: Trump posted a doctored screenshot Saturday night showing himself listed as “Acting President of Venezuela” on Wikipedia.⁷ He’s not trolling—this is a president who uses Truth Social for policy declarations. He’s claiming the conquest. Energy Secretary Chris Wright confirmed the U.S. will control Venezuela’s oil industry “indefinitely.” This is nation-building now—the kind of imperial project that costs trillions—while Americans struggle to afford groceries thanks to his tariffs and lose healthcare coverage as ACA subsidies get slashed to fund tax cuts for billionaires.

Epstein Files: DOJ continues to slow-walk release—still less than 1% of documents public—in violation of federal law. Maybe put ICE on it instead of invading cities and killing Americans. Though given their new hiring standards—recruits with pending criminal charges, gang tattoos, and no background checks arriving at training⁸—you might want to vet who gets access. Wouldn’t want a pedo getting ahold of Epstein’s stash.

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There’s more below, but first: If this kind of work—tracking the consolidation of power in real time—feels worth having, please consider supporting The American Manifesto. Paid subscriptions make it possible to keep watching.

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The Pattern

We’ve been mapping this administration against the fascism syndrome—ten indicators that a democracy is backsliding into fascism. Today:

• Weaponized justice: Prosecuting the Fed chair for not cutting rates. The investigation approved by a Trump loyalist. The crime: independence.

• Capture of the state and elimination of accountability: The Fed forced to serve presidential preferences instead of its statutory mission. Career independence criminalized.

• War on reality: “Freedom” for Iranian protesters; “terrorism” for American ones. Same president. Same week.

• Aggression as virtue: Thousands of armed federal agents occupying Minneapolis. Venezuela claimed as conquered territory. Strength measured by capacity to inflict harm.

“Public service sometimes requires standing firm in the face of threats.”

Jerome Powell said that. Let’s see who else has the spine. If you want to understand the machine—and how to dismantle it—start here:

The Freedom Illusion — Part I

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Your Move

• If you’re in a state with an elected AG or DA, have you asked what they’d do if federal agents break the law?

• What would it take for more Republicans to break from the administration—on the Fed, on Venezuela, on any of it?

• Powell said “public service sometimes requires standing firm.” Who else in power do you see standing firm right now?

1. Alexander Bolton, “GOP senator: DOJ ‘credibility’ is ‘in question’ over Powell investigation“, The Hill, January 12, 2026.

Reports Sen. Thom Tillis questioning DOJ credibility and threatening to block all Trump Fed nominees until the legal matter is resolved. Documents that Rep. Anna Paulina Luna made criminal referral in July about the $2.5 billion renovation, and that AG Pam Bondi instructed U.S. attorneys to “prioritize investigating any abuse of taxpayer dollars.” Also notes Senate Majority Leader Thune’s warning that the probe “better be serious.”

2. Federal Reserve, “Statement from Federal Reserve Chair Jerome H. Powell“, Federal Reserve, January 11, 2026.

Powell’s official statement confirming grand jury subpoenas and explicitly calling them “pretexts” for retaliation over interest rate decisions. Key quote: “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.”

3. CNN, “Federal prosecutors open criminal investigation into the Fed and Jerome Powell“, CNN, January 11, 2026.

Documents that the investigation was approved in November by Jeanine Pirro, Trump loyalist serving as U.S. Attorney for the District of Columbia. Provides context on Trump’s years of public attacks on Powell for not cutting rates fast enough.

4. CNN, “Trump is pledging to ‘rescue’ protesters in Iran. He has a selective view of the sanctity of protests“, CNN, January 12, 2026.

Analysis explicitly framing Trump’s Iran rhetoric against his administration’s treatment of protesters at home—a rare direct critique from a mainstream outlet typically reluctant to challenge this administration.

5. Associated Press, “Trump says Iran wants to negotiate as the death toll in protests rises to at least 599“, AP, January 12, 2026.

Most current death toll figures: 599 dead (510 protesters, 89 security forces), 10,600+ detained. Documents Trump’s 25% tariff announcement on countries doing business with Iran. Reports on pro-government counter-demonstrations and video showing bodies at morgue outside Tehran.

6. ABC News, “Minneapolis ICE shooting live updates: State, cities file lawsuit to stop ICE’s ‘federal invasion’“, ABC News, January 12, 2026.

Documents lawsuit filed by Minnesota, Minneapolis, and St. Paul against DHS. Includes video of AG Keith Ellison’s press conference where he accuses federal agents of “warrantless racist arrests,” “unconstitutional arrests and using excessive force,” and describes agents who “when asked to present a warrant... respond, we don’t need one.” Ellison calls it “a federal invasion” and declares “DHS is not above the law”—yet the response is a civil lawsuit, not criminal prosecution.

7. Donald J. Trump, “Truth Social post“, Truth Social, January 11, 2026.

Trump’s post sharing a doctored screenshot of a Wikipedia infobox listing him as “Acting President of Venezuela.” While the screenshot itself was fabricated, Trump’s choice to share it on his official social media—the same platform he uses for policy declarations—signals how he views the conquest. Posted 8:23 PM with 8.34k ReTruths and 33.4k Likes.

8. NBC News, “Some new ICE recruits have shown up to training without full vetting“, NBC News, 2025.

Documents ICE hiring surge failures: recruits arriving at training with pending criminal charges (including robbery and domestic violence battery), no fingerprints submitted, no background checks completed. Senator Durbin noted recruits who “failed drug tests,” displayed “tattoos associated with gangs and white supremacists,” and could “barely read or write.” ICE dismissed over 200 recruits after the failures came to light.