JP Morgan CEO Jamie Dimon Defends Fed Independence Amid Trump’s Intensified Attacks and Succession Talks

Jamie Dimon, CEO of JP Morgan Chase, has strongly defended the Federal Reserve’s independence, calling it “absolutely critical” amidst escalating pressure from Donald Trump for immediate interest rate cuts. Dimon’s comments were made as the White House confirmed it has already initiated a process to select a successor for current Fed Chair Jerome Powell, despite his term not concluding until May next year.

Trump has consistently lambasted Powell, labeling him “very dumb” and a “major loser,” and recently posted a handwritten note urging significant rate reductions, claiming Powell has “cost the USA a fortune.” Powell, conversely, has indicated that rate cuts have been delayed partly due to Trump’s tariff policies, which many fear could fuel inflation. Recent data for June showed the annual inflation rate climbing to 2.7%, up from 2.4% the previous month.

Speaking during JP Morgan’s quarterly earnings report, Dimon cautioned against political interference with the US central bank. “Playing around with the Fed can often have adverse consequences, the absolute opposite of what you might be hoping for,” he stated, emphasizing the importance of independence for both current and future Fed chairs.

Treasury Secretary Scott Bessent confirmed to Bloomberg TV that the White House is actively moving forward with selecting Powell’s replacement, noting, “There are a lot of great candidates. It’s President Trump’s decision and it will move at his speed.” Despite this, Bessent also stated that Trump has no intention of firing Powell, a sentiment contradicted by Kevin Hassett, director of Trump’s national economic council, who recently suggested Powell’s removal was “being looked into.”

The independence of the Fed is widely regarded as crucial for maintaining investor confidence and ensuring monetary policy can effectively control inflation without political influence. Previous attacks by Trump on Powell were cited as a factor in an April bond market selloff, which led to a 90-day tariff pause, a deadline recently extended from July 9th to August 1st.

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