Catenaa, Tuesday, December 30, 2025- Bank of America CEO Brian Moynihan cautioned that any attempts by President Donald Trump to influence the Federal Reserve could have negative consequences for financial markets.
Moynihan told CBS’ Face the Nation that an independent central bank is critical, and the market “will punish people” if that independence is compromised.
Trump has repeatedly criticized Fed Chair Jerome Powell and threatened to fire him for not cutting interest rates to his preference.
He also attempted to remove Federal Reserve governor Lisa Cook, though a court has temporarily blocked the move.
Powell’s term expires in May 2026, and Trump is expected to announce a replacement early next year, raising further concerns about political interference.
Moynihan emphasized the importance of Fed independence while noting the broader economy is largely driven by private sector activity rather than central bank actions.
He described the Fed as primarily a lender of last resort that stabilizes markets but argued Americans “shouldn’t know they exist” under normal circumstances.
Legal developments are expected to shape the debate over Fed autonomy. The Supreme Court will hear arguments on Jan. 21 regarding Trump’s attempt to remove Cook and related cases involving presidential authority over independent federal boards.
Decisions are expected before the court’s term ends in June 2026.
Moynihan expressed confidence in Trump’s upcoming appointment, describing the candidates as “great” and noting the bank will support the Fed nominee with necessary information for success.
