Market news: Federal Reserve Chairperson Jerome Powell holds closed-door meeting with CEOs of major U.S. banks

On August 17, according to a report by Kim Ten, Federal Reserve Chairperson Jerome Powell recently attended a closed-door meeting with CEOs of major banks, encouraging them to work with the Federal Reserve to avoid a years-long legal battle over the Biden administration's signature capital plan. According to people familiar with the matter, Powell told bank heads, including Jamie Dimon of JPMorgan Chase and Jane Fraser of Citigroup, that the public would have the opportunity to comment on key revisions to the plan. While it is not uncommon for Powell or other Fed governors to meet with a panel of CEOs of top banks, the discussion is the latest sign that Powell is trying to use his influence to get the industry and Fed governors to reach a consensus and finalize the plan. The plan, born out of the 2008 global financial crisis, has been in the works for more than a decade. Industry has raised strong objections and is preparing for potential legal action.