Wall Street CEOs support Fed independence

Wall Street Leaders Rally Behind Fed Independence

Wall Street CEOs support Fed independence JPMorgan Chase and BNY Mellon, voiced strong support for the independence of the U.S. Federal Reserve on Tuesday. Their statements come in response to the Trump administration’s criminal investigation into Fed Chair Jerome Powell, which has drawn criticism from both former central bankers and leading members of Congress.

Jamie Dimon, CEO of JPMorgan Chase, stressed the importance of Fed autonomy during a conference call with reporters. “Everyone we know believes in Fed independence,” Dimon said. “This is probably not a great idea and, in my view, it will have the reverse consequences of raising inflation expectations and likely increasing interest rates over time.”

Dimon, a highly influential figure in corporate America, emphasized that preserving the Fed’s independence has been absolutely critical for maintaining economic stability.

BNY Mellon CEO Warns Against Political Interference

Robin Vince, CEO of BNY Mellon, also highlighted the risks of undermining central bank autonomy. “Independent central banks that can set monetary policy in the long-term interests of the nation are essential,” Vince said. He added that weakening the Fed’s independence could shake confidence in the bond market and potentially push interest rates higher.

“Let’s not destabilize the foundation of the bond market and risk economic volatility,” Vince added.

Fed Under Scrutiny

Fed Chair Jerome Powell disclosed that the Federal Reserve had received subpoenas from the U.S. Department of Justice over the renovation of the Fed’s headquarters. Powell described the probe as a “pretext” intended to influence the Fed’s interest rate policies.

Economists and central bankers warn that political interference could compromise the Fed’s commitment to its inflation targets, raise inflation risks, and introduce volatility in global financial markets.

Jeremy Barnum, JPMorgan’s Chief Financial Officer, noted:

“Loss of Fed independence tends to lead to steeper yield curves and other damage to economic dynamism. The larger question is damage to American economic prospects and global stability.”

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Trump’s Pressure on the Fed

Since resuming office in 2025, President Trump has publicly called for interest rate cuts, blaming the Fed for slowing economic growth. He has also floated the possibility of firing Powell, though legal protections make this highly unlikely.

Powell’s term as Fed Chair ends in May, but he can remain on the Fed board until January 31, 2028, limiting the president’s ability to make a fourth appointment to the seven-member board during his term.

Potential Market Impact of Fed Independence Erosion