JP Morgan Chief Warns of Inflation Risk from Trump's Fed Attacks, Central Bank Allies Rally Behind Powell.
In a surprising move, Jamie Dimon, the CEO of JP Morgan, has weighed in on Donald Trump's attacks on Federal Reserve Chairman Jerome Powell. The billionaire banker warned that such criticism could undermine central bank independence and ultimately push up interest rates and inflation.
Dimon expressed his respect for Powell, saying that anyone who believes in Fed independence should be concerned about the erosion of its authority. He predicted that anything that threatens this independence will have "the reverse consequences," which would likely lead to increased inflation expectations and higher interest rates.
The JP Morgan CEO's comments come as Trump continues to criticize Powell over a controversial criminal investigation into the Fed's alleged abuse of taxpayer dollars for a $2.5 billion renovation project at the Fed's headquarters in Washington, D.C. Trump has repeatedly attacked Powell, calling him "a bad Fed person" who has done a "bad job."
In response to Dimon's warnings, central banks around the world have rallied behind Powell and defended Fed independence. Ten top central bank governors, including the Bank of England governor Andrew Bailey and European Central Bank chair Christine Lagarde, issued a joint statement offering full solidarity for Powell.
The move is seen as a show of unity among the global financial community, which values the independence of central banks in making monetary policy decisions. However, it also highlights the growing tension between Trump's administration and the Fed, which has been a long-standing point of contention between the two parties.
As JP Morgan releases its fourth-quarter earnings results, Dimon's comments have added another layer of uncertainty to the market. The bank reported a 7% drop in profits to $13 billion, attributed to a one-off cost associated with its takeover of a credit card partnership with Apple.
The deal was announced days before Trump called for a 10% cap on credit card interest rates, which has caused shares in major credit card providers to tumble. JP Morgan's chief financial officer Jeremy Barnum warned that such a cap would not only weigh on the bank's profits but also have a severely negative consequence for consumers and the economy as a whole.
The situation highlights the risks of politicization of monetary policy, which could undermine the Fed's ability to make decisions in the best interests of the country.
In a surprising move, Jamie Dimon, the CEO of JP Morgan, has weighed in on Donald Trump's attacks on Federal Reserve Chairman Jerome Powell. The billionaire banker warned that such criticism could undermine central bank independence and ultimately push up interest rates and inflation.
Dimon expressed his respect for Powell, saying that anyone who believes in Fed independence should be concerned about the erosion of its authority. He predicted that anything that threatens this independence will have "the reverse consequences," which would likely lead to increased inflation expectations and higher interest rates.
The JP Morgan CEO's comments come as Trump continues to criticize Powell over a controversial criminal investigation into the Fed's alleged abuse of taxpayer dollars for a $2.5 billion renovation project at the Fed's headquarters in Washington, D.C. Trump has repeatedly attacked Powell, calling him "a bad Fed person" who has done a "bad job."
In response to Dimon's warnings, central banks around the world have rallied behind Powell and defended Fed independence. Ten top central bank governors, including the Bank of England governor Andrew Bailey and European Central Bank chair Christine Lagarde, issued a joint statement offering full solidarity for Powell.
The move is seen as a show of unity among the global financial community, which values the independence of central banks in making monetary policy decisions. However, it also highlights the growing tension between Trump's administration and the Fed, which has been a long-standing point of contention between the two parties.
As JP Morgan releases its fourth-quarter earnings results, Dimon's comments have added another layer of uncertainty to the market. The bank reported a 7% drop in profits to $13 billion, attributed to a one-off cost associated with its takeover of a credit card partnership with Apple.
The deal was announced days before Trump called for a 10% cap on credit card interest rates, which has caused shares in major credit card providers to tumble. JP Morgan's chief financial officer Jeremy Barnum warned that such a cap would not only weigh on the bank's profits but also have a severely negative consequence for consumers and the economy as a whole.
The situation highlights the risks of politicization of monetary policy, which could undermine the Fed's ability to make decisions in the best interests of the country.
. And then it hit me - have you ever noticed how superhero movies always seem to show cities with zero crime or traffic congestion? Like, what even is that?! Can't we all just be as cool and efficient as Tony Stark for once? 
. My kid was like 10 minutes old and she's already obsessed with those things. Anyway, back to superhero movies...
This is getting crazy! Trump is already trying to attack Powell, now Jamie Dimon jumps in and warns about inflation risk 
. It's like, what's next? The big banks going after each other? 
JP Morgan just dropped some harsh earnings news too 
. If the Fed loses its independence, it could be disastrous for everyone 
. I'm all about central bank stability 
. Can't we just focus on growth and stability without all this drama? 
. I mean, come on, Dimon's basically saying that if you try to control the Fed, it'll just lead to more inflation and economic chaos 
.
. They won't know who to trust anymore - will it be the Fed or the President? It's like playing chicken with the global economy 
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. We need to protect people from predatory lending practices, not stifle innovation and competition 
.
. The Fed's got one job: keep the economy stable and grow. Let them do their thing without politicians trying to micromanage everything 
It's all about power and control, not about making decisions that benefit everyone 
.
It makes sense that the global financial community is rallying behind Powell, they know what's at stake here. But it also highlights how crazy this situation has gotten - who would've thought Trump's credit card cap idea would cause major credit card providers to tank? 
i mean, its not like powell hasnt been criticized before for all the wrong reasons, but at least he can do his job without some billionaire telling him to just make monetary policy more business-friendly 
I'm so worried about this... it seems like Trump is really going after Powell and the Fed, and now Jamie Dimon is speaking up too! It feels like we're seeing a whole lot of uncertainty in the markets right now, especially with JP Morgan's earnings results 
. What if it affects consumers and the economy? It's giving me anxiety just thinking about it 
. If Trump wants to attack Powell, he should just come out and say it instead of being all vague about stuff. And what's with the 10% credit card interest rate cap? That sounds like a total disaster for consumers and businesses alike