Overview
- Brian Moynihan told CBS’ Face the Nation that “the market will punish people” if the Federal Reserve loses independence, in an interview recorded December 17 and aired December 28.
- The Fed cut rates for a third straight meeting in December, setting the federal funds rate at 3.5% to 3.75%, the lowest level since November 2022.
- President Trump has repeatedly criticized and threatened to fire Chair Jerome Powell, and he has said he intends to announce a replacement early next year before Powell’s term ends in May 2026.
- Trump’s attempt to remove Fed Governor Lisa Cook is currently blocked by lower courts, with the Supreme Court set to hear arguments on January 21, 2026.
- In a separate May ruling, the Supreme Court allowed removals at certain labor boards but described the Fed as a uniquely structured, quasi‑private entity, signaling stronger protections.