Plus: New York Times models transparency via transcript; the hottest club is a bean subscription.
Federal Reserve Chair Jerome Powell has released both a video and an accompanying statement denying allegations of perjury.
Powell, who has faced steady pressure from the Trump administration over his decision not to cut interest rates as much as President Donald Trump would like, framed an investigation into his statements to Congress surrounding building renovations as a “new threat.”
“I have deep respect for the rule of law and for accountability in our democracy,” Powell said. “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.”
Throughout the filmed version of the statement, Powell is calm and even-keeled. While some of his words toward the Trump administration are sharp, his presentation style is almost dry, like a professor delivering a lecture rather than a man under legal threat.
His words are clear and unequivocal in framing the investigation:
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.
This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation.
In an interview with NBC News, Trump denied knowledge of the investigation or that it was politically motivated, while continuing to needle Powell.
“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump said.
Why it matters: Historically, the Federal Reserve chair has been seen as an apolitical figure, designed to operate outside the normal demands of elections and partisan politics. It’s unusual even for the chair to issue a solo video like this.
That typical communications restraint makes the understated video speak even more loudly. Powell’s careful, dispassionate yet pointed delivery is a sharp contrast to Trump’s own more casual and emotive style.
Powell’s audience is multifold: the American people, Congress, the judiciary and Donald Trump himself. At least some members of Congress have shown that they’re receptive to that message, with Republican Senator Thom Tillis saying he will oppose all Fed nominees until the investigation is resolved.
This situation shows the power of a normally quiet organization or leader breaking their silence. When quiet is the default stance, any deviation will gain more attention and more ears than one where chatter is the norm. A calm, collected tone can also stand out against more vocal and expressive opponents. It all comes down to understanding the communications style, preferences and goals of leadership.
Editor’s Top Reads:
- Trump has levied criticism (and lawsuits) against various media organizations for alleged selective editing of interviews. The New York Times has struck back in a quiet but meaningful way: Publishing a full transcript of Trump’s nearly four hours spent with its reporters. While some portions of that time, including a lengthy phone call with the president of Colombia, are off-the-record, the entire transcript is still estimated to take 87 minutes to read. While the Times published at least 11 individual stories on the interview, zeroing in on Trump’s remarks on everything from Venezuela to White House renovations, they also made the full transcript available to head off accusations of journalistic tampering. It’s a clever balancing act that can bolster trust with both the public and the administration, while also still allowing the outlet to engage in traditional fact-checking and story-framing through its reported pieces.
- The hottest subscription box doesn’t deliver dog toys or fashion accessories to your door. No, once a quarter, the Rancho Gordo Bean Club will send heritage beans direct to your doorstep for just $50 per box. The club is so popular, 29,000 people have already subscribed — and 30,000 more are on the wait list. What makes this doubly remarkable is the refusal of Rancho Gordo’s founder to bow to pressure to make beans trendy. “People say, ‘Oh, beans are having their moment,’ ” Steve Sando told the Wall Street Journal. “But moments pass. I don’t want that. I want to incorporate beans into the way we eat.” In the era of instant gratification and micro-trends, Rancho Gordo’s refusal to bow to the sudden popularity of dietary fiber shows a company that confidently knows who it is and refuses to compromise. Rancho Gordo isn’t positioning itself as a health food to earn a quick buck — they’re sticking by their value proposition as a food that’s simply delicious. “It might seem ungrateful that I don’t care about the health stuff, but I just don’t think it lasts the way something really delicious would,” Sando said.
- Meta has named a new president and vice chairman with deep ties to banking and Republican politics over tech. Dina Powell McCormick spent 16 years with Goldman Sachs, as senior White House advisor and assistant secretary of state under President George W. Bush, and as deputy national security advisor under Trump. Most recently, she held the title ofvice chair, president, and head of global client services at BDT & MSD Partners. “(Powell McCormick) brings deep experience in finance, economic development, and government,” wrote Mark Zuckerberg, who continues as chairman and CEO. “She’ll be involved in all of Meta’s work, with a particular focus on partnering with governments and sovereigns to build, deploy, invest in, and finance Meta’s AI and infrastructure.” She even comes with a glowing endorsement from Jamie Dimon. This move shows two fundamental truths about the state of tech today: Their real power lays in the ability to secure money to build infrastructure as well as the political connections to shape regulations. Social media is no longer their major product.
Allison Carter is editorial director of PR Daily and Ragan.com. Follow her on LinkedIn.
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