Wall Street defends Powell! CEOs of major banks speak out in unison: the independence of the Federal Reserve is the cornerstone of market confidence.

As the long-standing conflict between U.S. President Trump and Federal Reserve Chairman Powell continues to escalate, senior leadership of some large banks on Wall Street have emphasized the importance of an independent Federal Reserve institution. Brian Moynihan, CEO of Bank of America, along with Goldman Sachs CEO David Solomon and JPMorgan Chase CEO Jamie Dimon, emphasized the importance of the Fed's independence. Moynihan stated in an interview on Wednesday that the Fed "is designed to be independent." Citi CEO Jane Fraser stated in a statement, "The independence of the Fed is vital to its credibility. This is crucial for our capital markets and America's competitiveness." Trump has repeatedly criticized Powell for not taking action to lower interest rates, and U.S. government officials recently confirmed that the process of selecting a replacement is underway - Powell's term as chairman does not end until May 2026. Analysts warn that if Trump were to remove Powell from his position, it would disrupt financial markets and trigger a serious legal dispute over central bank independence. On Wednesday, Trump denied any intention to replace Powell. Previously, a White House official had indicated that this possibility was discussed during a meeting with Congressional Republicans on Tuesday evening. On Wednesday, Trump once again criticized Powell, calling him a "fool" and accusing him of lowering rates "too late." Dimon stated on Tuesday that maintaining the Fed's independence was "critical." This not only means under Powell's leadership (Dimon stated he respects Powell), but also for whoever eventually succeeds him. The CEO said during the bank's second quarter earnings call that interfering with the Fed "often has negative consequences." Solomon stated that the independence of the Fed, particularly in monetary policy, is "extremely important." He said on Wednesday, "I believe that the independence of central banks - not only in the U.S., but globally - has brought us tremendous benefits. This is something we must strive to maintain." Moynihan noted that the president also has the right to appoint the next Federal Reserve chairman through Congress. He also pointed out that any successor must handle interest rate issues properly. He stated, "The Fed is an independent institution, and its responsibilities should go beyond the executive branch and Congress. They will be held accountable, supervised, and reviewed. The fact is, they are established to maintain independence."