Dimon: Interfering with Fed would push rates higher

JPMorgan Chase CEO Jamie Dimon warned on Tuesday that any political interference with the Federal Reserve would hike up inflation and interest rates, referring to the Justice Department’s probe into Fed Chair Jerome Powell.

Speaking after JPMorgan’s fourth-quarter earnings, Dimon said the recent subpoenas for the Fed risk undermining the central bank’s independence.

He noted the effects of such legal actions would work against what President Donald Trump wants, which is low inflation and interest rates.

Trump quickly dismissed Dimon’s criticism, saying, “It’s fine what I’m doing, we have a bad Fed person.” He also suggested that Dimon supports high rates and stands to profit from them.

Global solidarity
The heads of the European Central Bank and other major central banks from the UK, Sweden, Denmark, Switzerland, Australia, Canada, South Korea, and Brazil issued a rare joint statement in support of Powell.