The Federal Reserve's Independence Dilemma: Silence from Corporate Executives and the Market's Awakening

【BlockBeats】The independence of the Federal Reserve is experiencing unprecedented pressure. On January 13, the Trump administration launched a judicial investigation into Fed Chair Jerome Powell, ostensibly over the costs of headquarters renovations, but Powell was frank—this is not an investigation into engineering issues, but a threat to the central bank’s independent decision-making authority. His logic is clear: the real purpose of the investigation is because the Fed’s interest rate policies are not aligned with the President’s wishes.

This incident should have sparked public outrage. After all, central bank independence is regarded as the cornerstone of modern developed economies. But the reality is quite ironic—the American business community and Wall Street have remained silent collectively. Large corporations, industry organizations, and CEOs have almost said nothing publicly.

A private survey conducted by Jeffrey Sonnenfeld, founder of Yale University’s Chief Executive Leadership Institute, revealed the truth: 71% of CEOs believe the current government is eroding the Fed’s independence, and 80% think that pressuring the Fed to cut rates is harmful to the overall interests of the United States. But why are these people silent? The answer is quite painful—they fear being “named and retaliated against.”

There is another layer of logic behind the business community’s silence. Some companies rely on a low-interest-rate environment to support financing and investment returns, and privately, they actually hope the Fed can be “persuaded.” Some choose to act behind the scenes, while others bet that Trump will ultimately “back off.”

What’s even more worrying is that market vigilance against political interference in central banks is declining. More and more business figures and Wall Street voices are beginning to agree with Trump’s judgment, as if the politicization of monetary policy has become the new normal. This not only changes the policy direction but could also reshape the entire rules of the financial markets.