Don’t Worry Wall Street, Trump Is Coming For Your Investment Bankers Too!

Source: Squarespace/ Unsplash

The Fed As A New Target

For those keeping score, Donald Trump’s mission in his second term as president to reshape American institutions has already bulldozed through some of the most powerful sectors in the country. Universities? Declared too liberal and “woke.” Law firms? Accused of being complicit in a justice system he’s convinced is rigged. The Federal Reserve? Now officially a target, as Trump eyes a return to power with fresh threats to gut its independence. And next on the list? Investment banks.

Wall Street, don’t get too comfortable—Trump hasn’t forgotten you.

Trump’s political instincts have always gravitated toward confrontation, particularly with institutions that project intellectual or financial authority. His supporters eat it up. He’s painted universities as elitist indoctrination machines, law firms as part of a legal swamp, and the Fed as a cabal of out-of-touch technocrats. But while Wall Street mostly got a pass during his first term (think tax cuts and deregulation), a second Trump presidency is shaping up to be something very different. This time, it’s not just about empowering markets—it’s about loyalty.

According to a social media post President Donald Trump uploaded to truth social on Apr 17, 2025 at 6:12 AM:

“The ECB is expected to cut interest rates for the 7th time, and yet, “Too Late” Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete “mess!” Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!”

Chair Powell answers reporters' questions at the FOMC press conference on September 18, 2024. Public Domain

What does it mean to remove Jerome Powell?

Removing Jerome Powell as chairman of the Federal Reserve would be more than just a political misstep—it would be a signal flare for the unraveling of one of the last credible, nonpartisan institutions in the U.S. economic system. In a time when nearly every sector of American life has become politicized or polarized, Powell’s steady leadership at the Fed has stood as a rare anchor of continuity, discipline, and trust.

To be clear, President Trump does not actually have the power to fire Chairman Powell, he merely has the ability to pressure him to resign, but we all know what lengths Donald Trump is willing to go through to get what he wants.

Powell’s record speaks for itself. He helped navigate the U.S. economy through the most volatile crisis in modern memory—the COVID-19 pandemic—by deploying swift and massive intervention that stabilized markets and reassured the public. When inflation emerged in the aftermath, he shifted the Fed’s posture with equal resolve, executing a series of rate hikes that, while controversial, were necessary to re-anchor long-term economic expectations. This wasn’t partisan maneuvering—it was central banking in its purest form: measured, technocratic, and grounded in macroeconomic reality.

And it’s important to remember that Powell has served under both a Republican and a Democrat—nominated by Trump, reappointed by Biden—underscoring his nonpartisan credentials and deep institutional credibility. His continued presence at the helm of the Fed has offered reassurance to global markets, U.S. businesses, and average citizens alike that, despite political chaos, someone serious is still watching the dials.

To remove him now, in what would likely be an act of political vengeance or ideological purification, would be catastrophic. It would shatter the perception—already hanging by a thread—that America’s core institutions can function above the partisan fray. It would be an overt signal that the independence of monetary policy is dead and that loyalty to a political leader matters more than qualifications or results.

This isn’t just about the Fed—it’s about the ripple effect. If Powell is ousted, what’s to stop a future administration from demanding submission from investment banks, corporate boards, and financial leaders? Monetary policy would no longer be driven by data, but by decree. CEOs, investors, and lenders would no longer make decisions based on rates or inflation targets, but on political whim and proximity to power. The independence of central banking—long considered essential to economic stability—would be replaced by something far more dangerous: economic authoritarianism.

At that point, the United States would no longer just be flirting with strongman politics. It would be deep in it. Removing Powell wouldn’t just be a mistake—it would be the moment we crossed the Rubicon.

Trump’s inner circle and proxies have started floating ideas that would have been unthinkable in GOP circles a decade ago: purging the “deep state” of career economists, installing Fed board members loyal to Trump, and breaking the old norms around monetary independence. He wants control. And once you want control of the Fed, it’s only a short jump to demanding obedience from the banks that rely on it.

Generated by ChatGPT

What’s Next For Investment Banks?

Investment banks—those fixtures of power from Park Avenue to Broad Street—are in the crosshairs not because they’ve gone woke (though some DEI initiatives may add fuel to the fire), but because they represent concentrated, global power that isn’t his. That makes them a problem.

Trump has never had much patience for big institutions that don’t bend to his will, and Wall Street’s top firms are no exception. He may have cut them breaks in the past, but don’t mistake that for allegiance. He doesn’t want a handshake—he wants a bow.

In Trump’s view, neutrality is betrayal. Silence is defiance. Investment banks, with their multi-million-dollar executive teams and carefully managed political donations, have tried to play it safe. But playing it safe doesn’t work in Trumpworld. If he gets the chance, he’ll want them to declare loyalty. Publicly. Loudly.

So while the bankers and dealmakers of Manhattan might still sip their espressos in sleek corner offices, they should know the temperature is changing. The man who once praised “the good people on Wall Street” now sees leverage. If you run a bank and haven’t endorsed him, you’re on notice. If you fund a competitor, you're an enemy. If you dare resist, expect a tweet, a probe, or worse.

Don’t worry, the message is coming. Trump is just warming up.