JPMorgan Chase CEO Jamie Dimon has come out in strong support of Federal Reserve Chair Jerome Powell, defending his leadership and emphasizing the importance of central bank independence despite sharp criticism from former President Donald Trump.
Speaking at a financial conference, Dimon underscored that an independent Federal Reserve is critical to maintaining market stability and curbing inflation. “The Fed has a clear mandate, and Powell is doing exactly what’s necessary,” Dimon said. “Over time, independence will be what allows interest rates to come down in a sustainable way.”
Trump has repeatedly attacked Powell, accusing him of mismanaging monetary policy and keeping rates unnecessarily high, a move he claims is stifling growth. However, Dimon rejected this view, arguing that short-term political pressure must not dictate monetary policy.
“We’ve seen what happens in countries where central banks are politicized,” Dimon warned. “It leads to runaway inflation, loss of investor confidence, and economic instability. That’s exactly what we must avoid in the United States.”
Dimon’s remarks also reflected optimism that the Fed’s current approach is laying the groundwork for eventual rate cuts, provided inflation continues to cool. “We’ll get lower rates, but they have to be earned,” he said. “Jerome Powell’s discipline is what will get us there.”
Wall Street analysts widely view Dimon’s comments as a vote of confidence in Powell amid mounting political scrutiny, reinforcing the consensus that Fed independence is vital to long-term economic health.
As Trump continues to escalate his rhetoric against Powell, Dimon’s stance highlights a sharp divide between political pressures and market realities. For now, business leaders appear firmly aligned with Powell’s cautious strategy, betting that patience will ultimately deliver rate relief without reigniting inflation.
