Good morning from the Financial Times. Today is Monday, January 12th, and this is your

FT News briefing. U.S. prosecutors have opened a criminal investigation into the chair of

the Federal Reserve, and as protests in Iran intensify, the government there warns America against military action.

Plus, geopolitics has been dominating the news cycle, but U.S. banks are poised to kick off earning season this week.

This is the start of what people are calling a potential investment banking super cycle for the next year or two.

I'm Victoria Craig, and here's the news you need to start your day.

The Fed said late Sunday that U.S. federal prosecutors have opened a criminal investigation into

Chair Jay Powell. The legal action

is related to the central bank's $2.5 billion renovation of its headquarters, and testimony Powell

gave to the Senate Banking Committee last summer about the project. The move is a major escalation

of a long-running pressure campaign by U.S. President Donald Trump on the chair.

In a recorded statement, Chair Powell said he has a, quote, deep respect for the rule of law and

accountability and that no one is above the law. But he said he believes the administration's action

is a pretext to rein in the central bank's independence. 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.

Powell, whose term expires in May, pledged to continue his job.

President Trump, meanwhile, is expected to announce his replacement

in the coming days.

Iran has warned America against a, quote, miscalculation after U.S. President Donald Trump

doubled down on his readiness to, quote, help, as two weeks of civil unrest continues in the Islamic Republic.

Protests, which began over outrage over economic hardship in Iran, continued Saturday and Sunday despite a government crackdown.

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