Wall Street bigs are desperately pleading with the White House to end Trump's Powell feud

• Senator on the Banking Committee is blocking a vote on new Fed chair Kevin Warsh until the investigation against Powell is dropped, creating a confirmation stalemate
• Powell is being investigated over a $2.5 billion Fed building renovation project (the 'Taj Mahal on the National Mall'), which his supporters view as politically motivated to force his early exit
• Wall Street sources indicate Powell will leave entirely if the investigation ends, but will stay as a Fed governor through 2028 if it continues, potentially blocking Trump's influence over the Fed's policy-making board

Summary: Wall Street Urges White House to Resolve Trump-Powell Standoff

Key Development: Wall Street executives are pressuring Treasury Secretary Scott Bessent and other White House officials to end the escalating feud between President Trump and Federal Reserve Chairman Jerome Powell, fearing prolonged market instability.

Central Conflict: Trump wants Powell removed immediately, while Powell—appointed by Trump during his first term—insists on serving his Fed governor term through 2028. Powell has indicated he will resign only if the administration drops its investigation against him. "He will leave if Trump's investigations are removed. If not he will stay as a governor," according to a C-suite source.

Market Implications: Wall Street's primary concern is ongoing market uncertainty, already elevated due to the Iran conflict. The nomination of Kevin Warsh as Powell's successor has stalled, with Senator opposition unless the investigation is dropped. Financial executives describe the situation as "self destructive and dumb."

Investigation Details: The Justice Department probe, led by U.S. Attorney Jeanine Pirro, focuses on Powell's congressional testimony regarding the $2.5 billion renovation of the Fed's Marriner S. Eccles building. Critics allege Powell downplayed the project's extravagance, though Powell denies wrongdoing and supporters note Washington's history of cost overruns.

Political Stakes: By remaining as a Fed governor after his chairmanship ends in May, Powell could limit Trump's control over monetary policy once Warsh assumes leadership. Powell maintains the investigation threatens the Fed's independence from White House fiscal policy goals.

Current Status: Trump continues advocating for the investigation while criticizing Powell's interest rate decisions. Bessent is reportedly working to resolve the standoff, though no resolution appears imminent.