Wall Street CEOs support Fed independence as Trump administration investigates Powell

CEOs of Wall Street’s top banks, JPMorgan Chase and BNY, expressed support for the independence of the US Federal Reserve on Tuesday, days after the Trump administration opened a criminal investigation into Fed Chairman Jerome Powell.The administration’s investigation into Powell this week drew condemnation from former Fed chiefs and criticism from key members of the Republican Party.

“Everyone we know believes in Fed independence,” JPMorgan CEO Jamie Dimon told reporters on a conference call. “This is probably not a great idea and in my view it will have the opposite impact: inflation expectations will rise and interest rates will likely rise over time.”Dimon, one of the most influential figures in corporate America, said last year that the Fed’s independence was “absolutely crucial.”

BNY CEO Robin Vince also warned on Tuesday of the negative consequences of eroding Fed independence.

“Independent central banks with the ability to independently set monetary policy in the long-term interest of the nation is a fairly well-established thing that we have seen around the world for a very long period of time,” Vince told reporters on a call.

“Let’s not shake up the fundamentals of the bond market and potentially do something that could actually cause rates to go up because somehow there’s a lack of confidence in the Fed’s independence,” Vince said. Powell revealed late Sunday that the Fed had received subpoenas from the U.S. Justice Department, which he called a “pretext” to gain presidential influence over interest rates. The US government’s criminal investigation formally concerns the renovation of the Fed’s headquarters.

Central bankers are concerned that political influence over the Fed would undermine confidence in the bank’s commitment to its inflation target, risk higher inflation and fuel volatility in global financial markets.

“Loss of Fed independence tends to lead to steeper yield curves and other damage to ongoing economic momentum,” JPMorgan Chief Financial Officer Jeremy Barnum said on a call with reporters. “The bigger question is the damage to America’s economic prospects and, frankly, to global economic stability.”

Trump has called for a Fed rate cut since returning to office in 2025, blaming his policies for holding back the economy and publicly musing about firing Powell, despite legal protections ostensibly shielding the Fed chairman from firing.

While Powell’s term as chairman ends in May, he has the right to remain on the Fed board until January 31, 2028, denying the president a new Fed appointment until the end of his term that would otherwise be Trump’s fourth member on the seven-member board.