Mike Wilson, Morgan Stanley's Chief US Equity Strategist and CIO, argues the Federal Reserve's independence has been eroding for two decades and the central bank must now support financial markets. Speaking in a Bloomberg interview, Wilson said the Fed's role has evolved from pure inflation control to market stabilization.

Wilson's comments come as investors closely watch the Fed's next moves amid economic uncertainty. The central bank's traditional mandate of price stability and maximum employment has increasingly been interpreted to include market functioning, especially after the 2008 financial crisis and 2020 pandemic response. This shift has drawn criticism from some economists who worry about political pressure on monetary policy.

Wilson's remarks underscore growing expectations that the Fed will prioritize market stability over aggressive rate hikes. With inflation still elevated and growth slowing, the central bank faces difficult choices about balancing its dual mandate with market demands. His perspective reflects a broader Wall Street view that the Fed's independence is now more limited than in previous decades.