Analysis: Federal Reserve Independence Challenged, Business Community Silence Raises Concern

January 13: The Federal Reserve’s independence faces a severe challenge as the Trump administration launches a judicial probe into Fed Chair Jerome Powell—yet the U.S. business community remains unusually calm. The U.S. Department of Justice (DOJ) has issued a criminal investigation subpoena to Powell over renovation costs at the Fed’s headquarters. Powell pushed back firmly, stating the probe is not about testimony or the project itself—but because the Fed did not align with the president’s interest rate preferences, threatening “central bank independent decision-making.” While the incident briefly roiled markets, major corporations, industry groups, and CEOs have been nearly silent publicly. Jeffrey Sonnenfeld, founder of the Yale CEO Leadership Institute, noted private surveys show: - 71% of CEOs believe the Trump administration is eroding Fed independence; - 80% think pressuring for rate cuts is not in the U.S.’s overall interest; but most fear political retaliation if they speak out publicly. Analysts link the silence to two factors: concerns over “being targeted for retaliation,” and reliance on/speculation about the low-interest-rate environment. Some executives influence policy via private channels, while others bet Trump will ultimately “blink in the showdown” (note: “TACO” appears to be a typo; context supports this phrasing). Scholars warn market vigilance against political interference in the Fed is waning. Some in the business community and on Wall Street even back Trump’s intuitive judgments—suggesting U.S. monetary policy may be entering a more politically charged new phase.