JPMorgan CEO Jamie Dimon has a clear message for Donald Trump: ‘Playing with Fed can…’; warns of tariff impact

JPMorgan Chase CEO Jamie Dimon seemed to be delivering a message to Donald Trump relating to the US President’s strain marketing campaign on the Federal Reserve, defending the central financial institution’s independence and cautioning towards coverage interference.“The independence of the Fed is absolutely critical,” Dimon mentioned on the financial institution’s second-quarter earnings name, “and not just for the current Fed chairman, who I respect, but for the next Fed chairman.”His feedback come amid heightened tensions between the White House and the Federal Reserve, with Trump brazenly demanding steep price cuts. In a current social media put up, Trump referred to as Powell “very dumb” and a “major loser”, writing: “You have cost the USA a fortune and continue to do so. You should lower the rate – by a lot!”Dimon mentioned, “The President said he’s not going to try to remove Jay Powell,” including that meddling with the central financial institution might have unintended penalties, in keeping with an ET report. “Playing around with the Fed can often have adverse consequences, absolutely opposite of what you might be hoping for.”US Treasury Secretary Scott Bessent has reportedly instructed Bloomberg TV that the White House is candidates for Powell’s alternative. “There are a lot of great candidates. And we’ll see how rapidly it progresses. It’s President Trump’s decision and it will move at his speed,” Bessent mentioned.Trump has on his half denied any intent to right away exchange Powell.JPMorgan reported a second-quarter web revenue of $15 billion, down 17% from the year-ago interval, however nonetheless forward of Wall Street expectations. The financial institution posted adjusted earnings of $5.24 per share, topping analysts’ estimate of $4.48 however decrease than the $6.12 per share reported final yr.Dimon additionally reiterated considerations about Trump’s commerce insurance policies, particularly tariffs and their long-term financial impact. “The finalization of tax reform and potential deregulation are positive for the economic outlook,” he mentioned, “however, significant risks persist—including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices.”The veteran Wall Street chief, who has led America’s largest financial institution for almost twenty years, mentioned the US economic system remained resilient within the quarter and highlighted a rise in JPMorgan’s funding banking income. But he warned that the president’s aggressive use of tariffs might undermine development. “Significant risks persist,” Dimon repeated, pointing to a mixture of home and world financial headwinds. The financial institution’s feedback come at a time when Trump has appointed three new members to the National Capital Planning Commission and is anticipated to proceed reshaping key financial and coverage our bodies, including additional strain on central establishments.