President Trump has fired back at JP Morgan CEO Jamie Dimon, who recently defended the Federal Reserve's independence in the face of a looming criminal investigation into Fed Chairman Jerome Powell. In a tense exchange, Trump dismissed Dimon's warnings as misplaced and self-serving.
The tension between the White House and the Federal Reserve reached a boiling point when Trump attacked the independence of the central bank, claiming that its chair was "a bad person." The President stated that he had every right to question Powell's leadership and said that the Fed should be making interest rates lower, not higher. He also hinted at his plans to announce a replacement for Powell within "the next few weeks," sparking concerns about the stability of the Federal Reserve.
Dimon, on the other hand, expressed admiration for Powell, calling him an "important leader" in the wake of Trump's attacks. The JP Morgan CEO acknowledged that the Fed's independence is essential and warned against attempts to chip away at it, citing potential risks to inflation expectations and interest rates.
However, not everyone shares Dimon's optimism. New Zealand's Foreign Minister Winston Peters has taken issue with his own country's central bank governor for signing a letter of support for Powell in response to the investigation. Peters reminded the governor that her role is strictly domestic and advised her to stay out of US politics altogether.
The standoff highlights a growing divide between politicians, business leaders, and financial experts over the role of the Federal Reserve in the economy. As the crisis surrounding Powell continues to unfold, it remains to be seen whether Trump's efforts will succeed in undermining the central bank's independence or if the Fed will emerge stronger as a result.
The tension between the White House and the Federal Reserve reached a boiling point when Trump attacked the independence of the central bank, claiming that its chair was "a bad person." The President stated that he had every right to question Powell's leadership and said that the Fed should be making interest rates lower, not higher. He also hinted at his plans to announce a replacement for Powell within "the next few weeks," sparking concerns about the stability of the Federal Reserve.
Dimon, on the other hand, expressed admiration for Powell, calling him an "important leader" in the wake of Trump's attacks. The JP Morgan CEO acknowledged that the Fed's independence is essential and warned against attempts to chip away at it, citing potential risks to inflation expectations and interest rates.
However, not everyone shares Dimon's optimism. New Zealand's Foreign Minister Winston Peters has taken issue with his own country's central bank governor for signing a letter of support for Powell in response to the investigation. Peters reminded the governor that her role is strictly domestic and advised her to stay out of US politics altogether.
The standoff highlights a growing divide between politicians, business leaders, and financial experts over the role of the Federal Reserve in the economy. As the crisis surrounding Powell continues to unfold, it remains to be seen whether Trump's efforts will succeed in undermining the central bank's independence or if the Fed will emerge stronger as a result.
I mean, can't we just focus on the economy without all the drama and politics? It feels like everyone's got an opinion on the Federal Reserve, except for the people who actually use their services 
. Dimon's warnings about preserving independence are valid, but at the same time, it's hard not to wonder if he's just trying to save his own skin 
. And Trump's threats against Powell? Unprofessional, plain and simple 
. I'm all for accountability, but not when it comes at the expense of the Fed's ability to make informed decisions 
. Can't we just have a calm conversation about monetary policy without the personal attacks and ultimatums? 
The Federal Reserve has been around for ages and it's not like they're making decisions based on personal opinions 
And what's up with Dimon getting roasted by Peters? I guess you just can't please everyone in politics 
Anyway, this whole thing is just a mess...I hope Powell gets to keep his job 
meanwhile, our NZ Foreign Minister Winston Peters is over here like "hey, can you keep politics domestic, governor?" like what's next? someone going to tell the PM to stop tweeting 
this whole thing is really scary 
i mean, who is jamie dimon to be so calm about this? 
he's got a big company to run after all 
doesn't he have to worry about losing investors or something? 
. I mean, come on, Trump thinks he can just attack Powell's leadership and not have any issues? That's not how it works, bro 
.
.
?
. Peters' comment about his governor staying out of US politics is a good one though 
. Whoever gets picked as Powell's successor has some big shoes to fill...
. Meanwhile, a Pew Research Center poll shows that 63% of Republicans believe in questioning Powell's leadership 
. It's interesting to see how polarized opinions are on this issue... did you know that interest rates have been lower in Democratic-majority states than Republican-majority states since the Fed raised rates last year? 
we need to keep them impartial so they don't get swayed by politics. i mean, who does trumps think he is? 
anyway, this whole thing is just a big mess and i'm sure it'll all come crashing down eventually 
It's like, can't Trump just let Powell do his thing without throwing shade at him first? 
I mean, can't we just focus on making sure our schools have enough resources to give students like me a quality education? Instead of all this drama between Trump and Dimon, shouldn't they be worried about something more important... like student loan debt? 
I'm starting to think that if politicians would just prioritize the next gen, maybe we wouldn't have so many problems in the economy 
but idk what the deal is with all these people having such strong opinions on this whole thing...can someone pls just explain it to me? 
. I mean, the fact that Trump is going after the Fed's independence like that is just concerning. I get it, everyone wants to make decisions for the economy, but this is exactly why we need an independent central bank in the first place 
. But at the same time, I'm thinking about Winston Peters saying that his own governor should stay out of US politics... like, what's the big deal? It's just a letter 
.