Wells Fargo CEO Charlie Scharf will speak in an interview with CNBC on the floor of the New York Stock Exchange (NYSE) in New York City, USA on June 4, 2025.
Brendan McDermid | Reuters
Wells Fargo CEO Charlie Scharf said he “absolutely” supports the independence of the Federal Reserve, but President Donald Trump said he is free to express his beliefs about how central banks should set monetary policy.
In an interview on CNBC’s “Squawk Box” Wednesday, Scharf said the Fed must be independent and is currently independent, referring to the fact that central bank leaders provide clear terms with elected politicians like the president. However, he added that there is a difference between Trump’s opinion on interest rates and the president that influences the Fed’s independence.
“I think the administration has a right to speak up about it, and I think the Fed should do what it believes it should be based on the information it sees,” Schaaf said.
Scharf said it’s nothing new for politicians to give ideas about the Federal Reserve fee decision, but Trump “came to be “very vocal about them.”
Trump repeatedly called on central banks to lower interest rates and launched an unprecedented attack on Fed Chairman Jerome Powell.
The president also attempted to fire federal governor Lisa Cook in August after his housing finance chief Bill Palt accused her of mortgage fraud. On Tuesday, a judge blocked Cook’s firing, and a lawsuit challenging the move progressed through the court system.
The market widely predicts that the Fed will cut interest rates at its September meeting as recent inflation data is lighter than expected and the labor market shows signs of trouble. CME FedWatch currently calculates the 90% chance that a central bank will reduce 25 basis points and the possibility of a 10% chance that a 50 basis points will be reduced.
“Too late” now requires a big drop in rates. Powell is a complete disaster and there are no clues!!” Trump posted on Truth Social Wednesday morning.
