economy
January 13, 2026
JP Morgan boss says Trump attacks on Federal Reserve could push up inflation
Jamie Dimon says pressure on chair Jerome Powell could ultimately increase interest rates
TL;DR
- JP Morgan CEO Jamie Dimon believes Donald Trump's attacks on Federal Reserve Chair Jerome Powell put central bank independence at risk.
- Dimon stated these attacks could backfire, potentially increasing inflation expectations and interest rates.
- Powell is reportedly under investigation by the US Department of Justice over alleged "abuse of taxpayer dollars" related to the Fed's headquarters renovation.
- Powell claims the investigation is punishment for not aligning interest rates with the US president's desires.
- Ten central bank governors, including those from the Bank of England and European Central Bank, have publicly supported Powell.
- JP Morgan reported a 7% drop in fourth-quarter profits due to a one-off cost from its takeover of a credit card partnership with Apple.
- Dimon commented on geopolitical risks, stating JP Morgan will focus on serving clients.
- JP Morgan's CFO, Jeremy Barnum, discussed contingency planning related to Trump's proposed 10% cap on credit card interest rates, warning it could lead to widespread loss of credit access for consumers and negatively impact the economy.
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