Donald Trump has pushed back against comments by JPMorgan Chase chief executive Jamie Dimon, rejecting suggestions that the US president is undermining the independence of the Federal Reserve.
Trump and his administration have repeatedly criticised the Fed and its chair, Jerome Powell, who is currently under investigation by the Department of Justice over alleged misuse of public funds linked to renovations at the central bank’s Washington headquarters. Powell has dismissed the claims, arguing they are politically motivated and linked to his refusal to cut interest rates more aggressively.
Responding to Dimon’s defence of the Fed, Trump said the banker was wrong to warn against political interference in monetary policy. Trump argued that interest rates should be lower and suggested that senior bankers may benefit from higher rates.
Trump also reiterated that he plans to announce a replacement for Powell within the next few weeks, despite concerns from financial leaders that such moves could damage confidence in the central bank.
Dimon had said that weakening the Fed’s independence could have the opposite of the intended effect, potentially pushing up inflation expectations and interest rates. Other senior banking executives echoed those concerns, warning that any loss of confidence in the Fed could unsettle financial markets.
The dispute has intensified debate over political pressure on central banks, with growing concern among global policymakers about the long-term consequences of eroding monetary independence.
