{"id":20258,"date":"2026-01-15T19:56:53","date_gmt":"2026-01-15T19:56:53","guid":{"rendered":"https:\/\/nationalgunowner.org\/index.php\/2026\/01\/15\/wall-street-backs-jerome-powell-as-the-feds-independence-faces-threat\/"},"modified":"2026-01-15T19:57:05","modified_gmt":"2026-01-15T19:57:05","slug":"wall-street-backs-jerome-powell-as-the-feds-independence-faces-threat","status":"publish","type":"post","link":"https:\/\/nationalgunowner.org\/index.php\/2026\/01\/15\/wall-street-backs-jerome-powell-as-the-feds-independence-faces-threat\/","title":{"rendered":"Wall Street Backs Jerome Powell as the Fed\u2019s Independence Faces Threat"},"content":{"rendered":"
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As Trump escalates attacks on the central bank, Wall Street unites around the importance of Fed independence. Photo by Chip Somodevilla\/Getty Images<\/span><\/figcaption><\/figure>\n

This week, several of America\u2019s most influential banking CEOs came out in support of Jerome Powell<\/a> after the Trump administration threatened the Federal Reserve chair with a criminal investigation in a move that could shake the central bank\u2019s long-standing independence.<\/p>\n

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CEOs from JPMorgan Chase<\/a>\u2019s Jamie Dimon<\/a> to Bank of America<\/a>\u2019s Brian Moynihan<\/a> warned that interference with the outgoing Fed chair could undermine the foundation of the U.S. economy. Their comments come as President Donald Trump<\/a> ramps up his public pressure on the Fed, which he has spent the past few months criticizing over its perceived reluctance to cut interest rates. Those efforts have included threatening to fire Powell and nominating loyalists to fill the central bank\u2019s board vacancies.<\/p>\n

The administration\u2019s attempt to twist the Fed\u2019s arm reached a crescendo earlier this week, when Powell revealed that the central bank had received subpoenas from the Department of Justice (DoJ) related to the $2.5 billion renovation of the Fed headquarters in Washington, D.C. According to Powell, the probe is a thinly veiled attempt to push for faster rate cuts. \u201cThe threat of criminal charges<\/a> 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,\u201d he said in a statement.<\/p>\n

Wall Street executives might not back all of Powell\u2019s decisions. But one thing they broadly agree on is that the Fed\u2019s autonomy is key to a sustainable economy\u2014one free from short-term political pressures.<\/p>\n

\u201cEveryone we know believes in Fed independence<\/a>,\u201d said Dimon during a recent call with reporters. \u201cAnything [that] chips away at that is probably not a great idea, and in my view will have the reverse consequences,\u201d added the CEO, who noted that the DoJ\u2019s investigation could eventually lead to higher inflation expectations and interest rates over time.<\/p>\n

Dimon\u2019s comments marked a departure from the executive\u2019s earlier stance. He has managed to stay in Trump\u2019s good graces by striking a more measured tone on policy disagreements. He also drew a rebuke from the President himself, who called the JPMorgan head \u201cwrong<\/a>\u201d and suggested that Dimon \u201cprobably wants higher rates\u2014maybe he makes more money that way.\u201d<\/p>\n

Much of Wall Street has sought to remain on Trump\u2019s good side so far in his second term. But the President\u2019s escalating attacks on the Fed appear to have crossed a line for many banking leaders, prompting an outpouring of support for Powell. Jeremy Barnum<\/a>, JPMorgan\u2019s chief financial officer, echoed Dimon earlier this week, telling reporters that \u201closs of Fed independence tends to lead to steeper yield curves<\/a> and other damage to ongoing economic dynamism,\u201d with the potential to harm both the U.S. economy and \u201cglobal economic stability.\u201d<\/p>\n

Robin Vince<\/a>, head of the Bank of New York Mellon<\/a>, also criticized the investigation, calling it a \u201ccounter-productive<\/a>\u201d move that could put the bond market at risk. \u201cDoing things that are going to detract from that agenda don\u2019t seem like the best things to do now,\u201d he said.<\/p>\n

It is \u201cfair game\u201d to offer critical commentary on the Fed\u2019s decisions, including whether policymakers are acting too quickly or too slowly, according to Moynihan. But the Bank of America CEO draws the line when it comes to threatening the central bank\u2019s autonomy, which he described as essential to American prosperity. \u201cAn independent Fed provides an anchor in this country to a success that all of us believe in<\/a>,\u201d he told CNBC yesterday (Jan. 14).<\/p>\n

Support for Powell has extended beyond sitting CEOs to former economic officials. More than a dozen past leaders, including former Fed chairs Janet Yellen<\/a>, Ben Bernanke<\/a> and Alan Greenspan<\/a>, issued a statement on Jan. 12 warning that such attacks have \u201cno place<\/a>\u201d in the U.S. They described the approach as akin to how \u201cmonetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly.\u201d<\/p>\n

Internationally, central bankers have also rallied around the Powell. \u201cChair Powell has served with integrity, judgment and unwavering commitment to the public interest<\/a>,\u201d read a recent letter signed by the heads of the European Central Bank, Bank of England and Bank of Canada, among others. \u201cTo us, he is a respected colleague who is held in the highest regard by all who have worked with him.\u201d<\/p>\n

\t\t\t\t\"Wall<\/p><\/div>\n