Survey: Bank execs value Fed independence, want proof before Gov. removal

The vast majority of bank executives support presidents only removing Federal Reserve governors when there is proof of “improper activity,” according to IntraFi’s Q3 2025 survey. .The survey, which included responses from 441 executives, was released Nov. 4. Four percent said “anything the president determines” should be sufficient grounds for dismissal. Earlier this year, President Donald Trump moved to remove Gov. Lisa Cook, citing allegations of mortgage fraud against her before she joined the board in 2022. The Supreme Court recently allowed Cook to remain as governor for now, until it can hear arguments in the case early next year. Critics of Trump’s action said the move chips away at the independence of the Federal Reserve. Seventy-five percent of bankers described Fed independence for monetary policy as “very important,” while another 20 percent listed it as “somewhat important.” Fifty-six percent said the Fed’s independence for bank regulatory policy was “very important,” while 35 percent described it as “somewhat important.” Bank executives expressed positive economic sentiments. Forty-five percent said loan demand increased from 12 months ago, while 25 percent reported a decrease. Thirty percent said loan demand was the same as a year ago. Forty-seven percent expect loan demand to rise in the next 12 months, while 39 percent predicted it would not change. Forty-two percent said economic conditions are unchanged from a year ago, while 35 percent listed improved conditions. Twenty-two percent said conditions have worsened. Thirty-seven percent expect economic conditions to be unchanged a year from now, while an even 31 percent share expect conditions to either worsen or improve. Other report findings included:Seventy-six percent said funding costs decreased from the third quarter of 2024, while 15 percent said funding costs were unchanged. Eighty percent expect funding costs will decrease in the next 12 months, while 17 percent expect it to remain the same. Nearly three-in-four said access to capital was the same as a year ago, compared to 22 percent who reported improvement. Three-in-four expect access to capital will be the same 12 months from now. Fifty-eight percent said deposit competition is unchanged from 12 months ago, compared with 33 percent who see increased competition. Fifty-seven percent expect deposit competition will not change over the next 12 months.