(Bloomberg) — Top bosses at some of Wall Street\u2019s biggest banks emphasized the importance of an independent Federal Reserve as the long-running saga between President Donald Trump and central bank Chair Jerome Powell intensified.<\/p>\n
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Bank of America Corp.\u2019s Chief Executive Officer Brian Moynihan and Goldman Sachs Group Inc.\u2019s David Solomon joined JPMorgan Chase & Co.\u2019s CEO Jamie Dimon in stressing the importance of the Fed\u2019s autonomy. Moynihan said in an interview with Bloomberg TV on Wednesday that the Fed was \u201cset up to be independent.\u201d<\/p>\n
Jane Fraser, who runs Citigroup Inc., said in a statement that \u201cthe independence of the Federal Reserve drives its credibility. It is critical to the effectiveness of our capital markets and US competitiveness.\u201d<\/p>\n
Trump has repeatedly assailed Powell for holding off on cutting rates, with administration officials confirming in recent days that a process to select a successor \u2014 Powell\u2019s term as chair isn\u2019t set to expire until May 2026 \u2014 is underway. Analysts have warned that if Trump were to oust Powell it would roil financial markets and lead to a serious legal showdown over the central bank\u2019s independence.<\/p>\n
Trump denied on Wednesday that he\u2019s seeking to remove Powell, after a White House official had said that such a move was discussed in a meeting with congressional Republicans on Tuesday night. Trump again attacked Powell on Wednesday, labeling him a \u201cknucklehead\u201d who has been \u201ctoo late\u201d to lower rates.<\/p>\n
Dimon said on Tuesday that the Fed\u2019s continued independence is \u201cabsolutely critical.\u201d That doesn\u2019t just mean under Powell, whom Dimon said he respects, but also for whomever eventually succeeds him. Meddling with the Fed \u201ccan often have adverse consequences,\u201d the CEO said during his bank\u2019s second-quarter earnings call.<\/p>\n
Goldman Sachs\u2019 CEO Solomon said in an interview on CNBC that Fed independence, particularly when it comes to monetary policy, is \u201csuper important.\u201d<\/p>\n
\u201cI think central bank independence, not just here in the United States but around the world, has served us incredibly well,\u201d he said Wednesday. It\u2019s something \u201cwe should fight to preserve,\u201d he added.<\/p>\n
Bank of America\u2019s Moynihan said it\u2019s also a president\u2019s right to appoint the next Fed successor through Congress. And any successor will have to navigate the rates question, he said.<\/p>\n
Story Continues <\/p>\n
\u201cThe Fed is an independent agency, and they are meant to be outside the purview of the executive, and Congress,\u201d he said on Bloomberg TV. \u201cThey are called to task, and monitored, and reviewed. The reality is they were set up to be independent.\u201d<\/p>\n
–With assistance from Jamie Tarabay and David Westin.<\/p>\n
(Updates with CEO statement in third paragraph.)<\/p>\n
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\u00a92025 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) — Top bosses at some of Wall Street\u2019s biggest banks emphasized the importance of an independent Federal…\n","protected":false},"author":3,"featured_media":69603,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[3638,49060,49061,64,22703,49062,79,1597,12143,21279,142,5005,67,132,68],"class_list":{"0":"post-69602","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-bloomberg","9":"tag-bloomberg-tv","10":"tag-brian-moynihan","11":"tag-business","12":"tag-central-bank","13":"tag-david-solomon","14":"tag-economy","15":"tag-federal-reserve","16":"tag-goldman-sachs-group","17":"tag-jamie-dimon","18":"tag-jerome-powell","19":"tag-president-donald-trump","20":"tag-united-states","21":"tag-unitedstates","22":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114868011871895142","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/69602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=69602"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/69602\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/69603"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=69602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=69602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=69602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}