Wealthion Macro Bites 1-13-26

Tensions between the Trump administration and the Fed reached yet another unprecedented height on Tuesday when 11 global central banks (including the BOE, the ECB and Bank of Canada) signed a joint statement declaring they “stand in full solidarity” with Chair Powell after the DOJ launched a criminal investigation into misrepresentations in Powell’s June Congressional testimony over costs of the Fed’s ongoing renovation project, “The independence of central banks is a cornerstone of price, financial and economic stability…It is therefore critical to preserve that independence.”

Given the overwhelmingly negative backlash to Powell subpoenas (from Democrats, Republicans and global central banks), the Trump administration seems to be distancing itself from the issue as media reports suggested U.S. attorney for the District of Columbia Jeanine Porro issued the subpoenas without seeking sign-off from her DOJ bosses. Trump said, “I don’t know anything about it.”

Separately, Fitch cited “Fed independence” as a key supporting factor in maintaining its AA+ U.S. credit rating. The agency will continue to monitor evolution of governance, including “institutional checks and balances” as well as the performance of the Fed in delivering low and stable inflation in its assessment of the U.S. sovereign rating.

Just ahead of the Supreme Court’s expected ruling on the legality of Trump tariffs under IEEPA, President Trump said on Tuesday he will impose a 25% blanket tariff on any country doing business with Iran. “Effective immediately, any country doing business with the Islamic Republic of Iran will pay a tariff of 25% on any and all business being done with the United States of America.” Trump’s Iran tariff threat poses significant hurdles to ongoing trade negotiations with countries such as China, India and Turkey.

Orion Resource Partners and SNB Capital (Saudi Arabia’s leading capital market institution) announced a strategic partnership to support the development of the Kingdom’s mining and metals industry. The partnership aligns with Saudi Arabia’s Vision 2030 strategy to provide national support to the mining sector, energy transition initiatives, and the growing demand for critical minerals required to meet expanding industrial and infrastructure needs.

In the past, CME has set margins for gold, silver, platinum and palladium contracts based on fixed dollar amounts. In reflection of increasing price volatility, CME will now set margins for gold (5%), silver (9%), platinum (9%) and palladium (11%) based on a percentage of notional value (beginning close of business 1/13/26).

Dec. CPI held steady at 2.7% annual increase.  European bonds ticking lower by 2bps-3bps across the board. 10-year Treasury yield +2bps (4.195%). DXY dollar index +0.15%, spot gold -0.15% and spot silver +0.75%.