Jamie Dimon warns Trump on Federal Reserve independence

(The Center Square) – JPMorgan Chase boss Jamie Dimon warned President Donald Trump on Tuesday about attacks against Federal Reserve Chairman Jerome Powell, noting the importance of the Fed's independence.

"Playing around with the Fed could have adverse consequences, the absolute opposite of what you might be hoping for," Dimon said during an earnings call. "It is important that they be independent."

Trump has repeatedly pushed Powell to lower interest rates, but the Fed has kept rates flat.

Trump has nicknamed the Fed Chairman "Too Late Powell" and said he's not smart, among other insults and name-calling. The president has even suggested appointing himself chairman of the Federal Reserve.

Trump has called for aggressive cuts.

"Europe has had 10 cuts, we have had none," Trump recently said. "We should be 2.5 points lower."

Powell and the Federal Open Market Committee, which sets rates, have taken a wait-and-see approach on interest rates, partly due to concerns about how Trump's tariffs will affect the U.S. economy and the Fed's mission for stable prices and maximum employment.

Powell has repeatedly dodged questions about Trump's criticism and said the Fed will follow the data.

The president has limited authority over the Federal Reserve, despite getting to nominate members.

The president nominates members to the seven-member Board of Governors of the Federal Reserve System. The Senate confirms nominees. Members serve 14-year terms with one term beginning every two years, on Feb. 1 of even-numbered years.

Trump nominated Powell as chair in 2017 and the U.S. Senate confirmed him in 2018. Former President Joe Biden reappointed Powell in 2022 to a second four-year term.