Warren, Wall Street Warn Trump Over Fed Independence

Senator Elizabeth Warren, a member of the Senate Banking Committee, and top Wall Street banking executives have warned that any attempt by President Trump to fire Federal Reserve Chair Jerome Powell could destabilize U.S. financial markets and undermine the central bank's independence. Warren stressed that such interference would politicize monetary policy, eroding a key safeguard of the U.S. economy and damaging its global reputation. Leading bankers, including the CEOs of Goldman Sachs, Bank of America, Citigroup, and JPMorgan Chase, echoed these concerns, emphasizing that Fed independence is essential for market credibility and economic stability. Bundesbank President Joachim Nagel also cautioned against political meddling in central bank affairs. Trump's repeated public pressure on Powell, despite saying it is 'highly unlikely' he would fire him, has already caused market jitters and rising Treasury yields. Policymakers and financial leaders agree that preserving the Fed's autonomy is vital for investor confidence and the effective functioning of the U.S. financial system.