Trump's Plan To Rein In Regulators Could Erode Market Trust, Says $2.3 Trillion Asset Manager

The chief investment officer of Europe’s largest asset manager warned Monday that President Donald Trump‘s recent executive order tightening control over independent U.S. regulators threatens to undermine trust in American markets.

Vincent Mortier, chief investment officer of Amundi, which manages 2.2 trillion euros ($2.312 trillion) in assets, called the move “a big, big mistake” in an interview with the Financial Times, saying that the proper functioning of U.S. markets depends fundamentally on trust from investors.

Trump announced an executive order on Feb. 18 requiring independent regulatory agencies to submit draft regulations for White House review. The order mandates that federal agencies consult with the White House on priorities and strategic plans, with the president setting performance standards for these agencies.

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“If everything is put under [executive power], with an agenda for deregulation, crypto, digital push — and many conflicts of interest everywhere, it is the start of the end of how democracy is working. It’s quite dangerous, really,” Mortier told the FT.

The executive order has carved out an exemption for the Federal Reserve’s monetary policy functions, though the central bank’s supervisory role remains within scope. Critics cited by FT anticipate court challenges and argue that the order overreaches presidential authority.

Mortier specifically pointed to potential risks to the dollar’s global standing. “The biggest threat is whenever people, in particular big foreign investors, start to question the trust,” he said. “The U.S. dollar status is also linked to this — trust in the U.S. system, in the Fed, in the U.S. economy.”

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While acknowledging that conflicts of interest have always existed in government, Mortier said, “Now we’ve reached another level.”

The Trump administration appears to be particularly focused on the 10-year U.S. government bond yield, a benchmark rate affecting trillions of dollars in assets worldwide. Treasury Secretary Scott Bessent has publicly emphasized the metric as a focus for the administration.

Yields reached 4.8% in mid-January, its highest level in 14 months, before declining as investors weighed inflation concerns against expectations of slower economic growth under the new administration.

Mortier suggested the administration recognized potential market fallout from directly challenging Fed independence. 

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They "totally understood that if they were to revoke the independence of the Fed, it would have had some very, very, very adverse consequences — in particular on the 10-year,” he said.

Despite the current exemption for Fed monetary policy, Mortier expressed concern about increasing pressure on the central bank. “Short term, there is no need to do it,” he said. “It’s a kind of red line in the short term, where the negative impact would have been much greater than any positive impact.”

While Mortier expressed some confidence in current Fed Chair Jerome Powell‘s ability to withstand political pressure, he raised concerns about succession when Powell’s term ends in May 2026.

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