Jamie Dimon touts Fed independence as Trump ponders replacing Jerome Powell

JPMorgan Chase CEO Jamie Dimon went to bat Tuesday for the Federal Reserve and its chair, Jerome Powell, as the White House pondered ousting him over disagreements about the path of short-term interest rates.

Multiple media outlets reported that Dimon, who has reined in criticism of President Trump during his second term, touted the independence of the central bank during an earnings call.

“I think the independence of the Fed is absolutely critical,” Dimon said, according to The Wall Street Journal. “Playing around with the Fed can have adverse consequences, the absolute opposite of what you might be hoping for.”

President Trump has been bashing Powell for months for not lowering interest rates.

Following the release of the consumer price index (CPI) on Tuesday, which showed prices ticking up due in part to Trump’s tariffs, Trump renewed his calls for lower rates.

“Consumer Prices low. Bring down the Fed rate, now!” the President posted on social media. 

The Fed started cutting rates last year but has paused cuts through 2025.

Powell said recently that he would have resumed cuts were it not for Trump’s tariffs, which have likely started to have an upward effect on prices.

Inflation in June rose to a 2.7-percent annual increase, up from 2.4 percent in May.

Many economists pinned the increase on companies passing along the cost of tariffs to customers by raising prices.

Trump has also been encouraging interest rate cuts because they would lower public debt service costs. Republicans recently expanded U.S. deficit levels by an estimated $3.3 trillion over the next ten years through the passage of the One Big Beautiful Bill Act.

“Fed should cut rates by three points. Very low inflation. One trillion dollars a year would be saved!” Trump posted on Tuesday.

Treasury Secretary Scott Bessent said Tuesday that there is a “formal process” underway of finding Powell’s successor, suggesting that the administration could seek to oust him. Powell’s term as chair doesn’t end until next year and his term as governor doesn’t end until 2028.

However, Trump told reporters Friday he wasn’t seeking to remove Powell, according to the Journal.

Trump’s repeated attacks on the Fed have prompted concerns that the administration could undermine the central bank’s independence and encourage it to be more tolerant of inflation.