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Posted on 01/13/2026 7:30:42 AM PST by Angelino97
JP Morgan boss Jamie Dimon has warned that the Trump administration's attacks on Federal Reserve chair Jerome Powell will backfire.
Dimon defended the Fed as he spoke with reporters after his bank issued its fourth-quarter earnings results on Tuesday.
'Everyone we know believes in Fed independence, and so do we, and anything chips away at that is probably not a great idea,' Dimon said.
'It will have the reverse consequences. It will raise inflation expectations and probably increase rates over time.'
The nation's pre-eminent banker added: 'I don't agree with everything that the Fed has done,' but 'I do have enormous respect for Jay Powell the man.'
Dimon's warning came as inflation pressures held steady in December, with consumer prices rising 2.7 percent in line with economists' expectations.
Inflation remains higher than the Fed's 2 percent target as the central bank continues to battle 'sticky' price pressures fueled by tariffs and a resilient jobs market.
Donald Trump has demanded aggressive rate cuts to juice the economy, but the Fed has resisted, arguing that 'running it hot' could reignite inflation.
Powell accused Trump of using the threat of prosecution to pressure the Fed into lowering interest rates in an extraordinary video message on Sunday night.
The Justice Department issued subpoenas on Friday over a $2.5 billion renovation of the Fed's headquarters.
Trump claimed he had no knowledge of the DOJ's investigation and administration officials, including Treasury Secretary Scott Bessent, were quick to distance themselves from the legal action.
The Fed's independence is considered sacrosanct because any political interference raises fears of reckless money-printing, spiraling inflation and currency collapse.
Bessent called Trump late on Sunday to warn that the DOJ's probe had 'made a mess.'
'The secretary isn't happy, and
(Excerpt) Read more at dailymail.co.uk ...
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The Fed shouldn’t exist
exactly, do we need the Fed?
Rates are down this morning due to the CPI report.
They will respond to fundamentals, not perceptions of The Office of Federal Reserve Board Chairman.
JP Morgan runs the world economy. We are mere spectators. Respect for Dimon.
If Powell turned the Fed’s offices into a palace, lied about it and then lied about massive construction cost overruns in the process, he deserves to be investigated. He’s not immune to investigation because he and Trump have a political spat. Government buildings went from being crappy, C-grade buildings in the 1970s and 1980s into palaces that are better than most private offices. Its a perk of employment that Powell and other employees benefit from. So he’s using government funds to benefit himself and lying about it. If that is true, he deserves to be prosecuted.
Just audit them. Start coining/printing actual US money. Of course you would need that gold that isn’t in kentucky.
Powell has plainly politicized the Fed to oppose Trump's tariffs. He should be sacked just for that.
Interest rates and reserve requirements should be set by the US Treasury department, not the Fed. Why? Because interest rates & reserve requirements control the value of the currency and control of the currency is given to Congress by the Constitution.
Nixon's abandonment of the Bretton Woods gold exchange mechanism effectively gave control of the currency to the Fed by removing the Congressionally mandated tie between specie and paper money.
Jamie didn’t seem to have a problem when the “independent” fed did whatever the DNC ordered them to.
Jamie doesn’t understand that Trump is getting rid of the Fed real soon. We need the Federal Reserve like we need small pox.
https://www.reuters.com/markets/us/feds-stages-inflation-grief-powells-words-2023-06-14/
This is the same guy who refused to raise rates as the “transitory” inflation began its run. Let them sit at 0. Read the environment poorly again and again. He seems incompetent. If there is a danger in the Fed losing some independence can it be more dangerous them giving them carte blanche?
Really? I thought only Congress could do that.
The Federal Reserve is explicitly required by the US Constitution.
Article 6
Paragraph 6
Clause 6.
Lol.
My hub thinks the Fed should be housed in Construction Trailers. They work for US...and are not royalty needing billion dollar offices.
BS!
If there is nothing there, then the FED chair has nothing to toworry about, but if he has lied, the American public has rthe right to know, because no one is above the law, and the law is that it is a crime to lie to Congress.
Little trivia, but the Fed inspired the Nazi regime’s pseudo central bank (also a private company) MOFO, which moved debt off the books of the government and allowed rearmament.
MOFO, in turn, inspired the Fed to change how it worked, becoming much more opaque, and introduced the concept of “qualitative easement” and the related concept of forced savings for retirement (which took the form of “social security” in the USA) which was really just a mechanism to allow printing of money without inflation because people (thought they were) saving for retirement.
In practice, there is almost no practical difference between the Nazi’s MOFO with forced savings and the combination of the Fed and Social Security.
Both are socialists scams to hide overspending and both just a Ponzi scheme that will eventually collapse.
The FDA is a great example: their ability to issue public health edicts (and SCOTUS' carve outs for such nonsense) was combined with their ready ability to move into high paying jobs and partnership with the pharmaceutical companies, creating a perfected combination of despotism and corruption for the COVID scam.
There's no reason to believe the Fed is any different.
That reference doesn’t exist in the Constitution. Is that a bad cite or is that your point?
There is absolutely no need for Trump/DOJ to be going after Powell now.
Trump’s 100% federal reserve focus should have been and should be just who he is going to pick to replace Powell. Period.
I have allot about the federal reserve I complain about, but as long as that is the system we have, do I want a President to make federal reserve policy? No. But that’s what Trump seems to want. Conservatives have to recognize any extension of Executive authority Trump manages to take, will accrue to his successors including any Dims. Is that what Conservative supporters of Trump want??
Trump wants interest rates lower. Do they really NEED to be lower is a matter NOT about what the rate is, but is credit too restrictive or not? Data about economic activity, not our personal wishes, is what determines that.
One measure:
tries to gauge all that data. If credit is too restrictive it acts as a headwind against economic activity, otherwise credit can be neutral or act a tailwind to the economy. It is usually not neutral.
The problem today is the data-point today would suggest credit is somewhat of a headwind, by historical standards, yet the GDP data (5% GDP growth last quarter) suggest credit is NOT acting that way today. From that you get a lack of consensus at the Fed as to lowering, or not lowering interest rates further.
To me, the problem with the Fed (or anyone) attempting to use easier credit as an economic tailwind is that they never know (never get it right) when to shut off the tailwind of easy credit and have ALWAYS in the end stimulated inflation BEFORE they change course.
If I has my druthers, I would just get rid of the Fed, and every bank will do (or buy) their own due diligence on interest rates (develop a consensus drawn from different positions from multiple good independent sources), and if we also have laws that mandate greater PUBLIC transparency - not just to customers, but everyone, of exactly the financial status of a bank, then anyone could see for themselves if a bank’s lending practices (including interest rates) seemed too conservative (restrictive) or too lenient (too loose).
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