JP Morgan CEO Jamie Dimon has warned that US President Donald Trump's attacks on Federal Reserve Chair Jerome Powell could have the opposite effect of what Trump intends, pushing up inflation and interest rates. The comments came as a joint statement from 10 central bank governors, including the Bank of England governor, offered "full solidarity" for Powell amid a contentious investigation into alleged abuse of taxpayer dollars.
Dimon expressed his respect for Powell and stressed the importance of the Fed's independence, stating that any attempts to chip away at it could lead to increased inflation expectations and higher interest rates. The warning comes as central banks around the world have rallied behind Powell and defended the Fed against Trump's criticism.
The tension between Dimon and Trump reached a boiling point when the JP Morgan CEO called for lower interest rates during an earnings call, while Trump dismissed Powell as "a bad Fed person" who has done a bad job. The US president also lashed out at Dimon, suggesting that he may be motivated to push for higher interest rates.
The situation is further complicated by Trump's threat to impose a 10% cap on credit card interest rates, which could have far-reaching consequences for the financial sector and consumers alike. Industry experts warn that such a move would lead to widespread access issues, particularly for those who rely heavily on credit, potentially harming the economy as a whole.
As the controversy surrounding Powell's investigation continues, JP Morgan remains focused on serving its clients and navigating the complex geopolitical landscape. However, with Trump's words carrying significant weight, it remains to be seen how the bank will respond to any future developments in this saga.
Dimon expressed his respect for Powell and stressed the importance of the Fed's independence, stating that any attempts to chip away at it could lead to increased inflation expectations and higher interest rates. The warning comes as central banks around the world have rallied behind Powell and defended the Fed against Trump's criticism.
The tension between Dimon and Trump reached a boiling point when the JP Morgan CEO called for lower interest rates during an earnings call, while Trump dismissed Powell as "a bad Fed person" who has done a bad job. The US president also lashed out at Dimon, suggesting that he may be motivated to push for higher interest rates.
The situation is further complicated by Trump's threat to impose a 10% cap on credit card interest rates, which could have far-reaching consequences for the financial sector and consumers alike. Industry experts warn that such a move would lead to widespread access issues, particularly for those who rely heavily on credit, potentially harming the economy as a whole.
As the controversy surrounding Powell's investigation continues, JP Morgan remains focused on serving its clients and navigating the complex geopolitical landscape. However, with Trump's words carrying significant weight, it remains to be seen how the bank will respond to any future developments in this saga.
I'm low-key worried about what's going down 
between Dimon and Trump 
it's like they're playing a high-stakes game of financial chess 
where one wrong move could lead to a market meltdown 
! The Fed's independence is key 
and if that's compromised, it could get real ugly 
for everyone involved. Credit card rates are already too steep 
but Trump's threats are seriously concerning 
. If Trump starts messing with credit card rates, it's gonna be a whole mess for consumers. I mean, who hasn't had those situations where they're stuck with crazy high interest? It's already hard enough to get credit without being trapped in that cycle. And let's be real, 10% is just ridiculous 
I wonder if Trump's attacks on Powell are really just an attempt to distract us from his own economic woes... 
Industry experts say it could lead to all sorts of problems for consumers and the economy as a whole. 
I'm just curious to see how JP Morgan responds to this drama unfolding around Powell... will they take Trump's bait or stay neutral? 
. Anyway, only time will tell how this all plays out... and hopefully not too many people get hurt financially 
. i think dimon is right tho, if trump keeps pushing for higher interest rates, it could backfire and lead to even more inflation 
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. I get why Trump's getting frustrated, but this whole thing just seems like a big show to me 
. I mean, what's the real issue here? Powell's being investigated for allegedly abusing taxpayer dollars? 
. That's not good for anyone except maybe the ultra-rich investors who are making a kill off this whole mess 
. Newsflash, buddy: we've got smart people watching you and it's not going to end well 
.
. Either way, it's gonna be interesting to watch this saga unfold 
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. Jamie Dimon is just trying to do his job and warn about potential consequences of Trump's attacks on Powell, but Trump keeps going after him like he's a personal enemy 
. It's not helping the economy or anyone's understanding of what's going on.
. We need more calm, rational discussion, not tweetstorms and personal attacks 
. These politicos are like kids playing with fire 
, threatening to blow up the whole system 
. Can't we all just focus on growing the economy without playing politics 
I mean, who needs that kind of record when there are more pressing issues in life...
and let's not even get started on the credit card thing - 10% CAP?!?! that's just insane! 
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. I mean, can you imagine not being able to use your credit cards or loans without worrying about getting slammed with an insane interest rate? It's like, totally not fair 
. And what about the economic impact on small businesses and all that? It's a total mess waiting to happen 
.