Jamie Dimon, JP Morgan Chase CEO and Chairman of the JPMorgan US Financial Industry Committee, is defending the independence of the Federal Reserve Chair Jerome Powell amidst President Donald Trump’s repeated calls for interest rate cuts.
Trump has criticized Powell, calling him “very dumb” and urging him to slash rates. However, Dimon said that Fed independence is crucial for maintaining investors’ confidence and bringing inflation under control.
Dimon warned against interfering with the US central bank’s workings, stating that playing around with the Fed can have adverse consequences. The US Treasury Secretary, Scott Bessent, confirmed that a formal process for choosing Powell’s successor had begun despite his term not ending until May.
Bessent noted that Trump has expressed interest in selecting a new candidate to replace Powell, but added that it would be up to the President to decide and progress at his own speed. The Fed chair received praise from fellow central bankers earlier this month after addressing concerns about Trump’s attacks on him.
The independence of the Federal Reserve is seen as vital for effective monetary policy, and Dimon’s comments support this view.
Source: https://www.theguardian.com/business/2025/jul/15/jamie-dimon-jp-morgan-jerome-powell-trump-defence