Donald Trump has hit out at JP Morgan chief executive Jamie Dimon, rejecting his claim that the US president is undermining the independence of the Federal Reserve. Speaking on Tuesday, Trump described Dimon's comments as wrong, adding that he wanted lower interest rates and that Dimon 'probably wants higher rates'.
The president has faced criticism for his sustained attacks on Fed chair Jerome Powell, who is under investigation by the Department of Justice over alleged misuse of taxpayer funds for renovations at the central bank's Washington headquarters. Powell has dismissed the allegations as baseless, suggesting they are punishment for not cutting rates swiftly enough.
Dimon earlier told reporters that he had 'enormous respect' for Powell and that anything chipping away at Fed independence would have 'reverse consequences', raising inflation expectations and potentially increasing interest rates. Robin Vince, chief executive of Bank of New York Mellon, also warned against shaking confidence in the Fed, saying an independent central bank is a well-established principle globally.
Trump, during a factory tour in Michigan, said he would continue with plans to announce a replacement for Powell within weeks. Powell was appointed by Trump in 2018.
It emerged that Powell had written to US senators last July detailing the Fed's $2.5bn renovation project, complicating claims he misled Congress. Separately, New Zealand's foreign minister, Winston Peters, rebuked central bank governor Anna Breman for signing a letter of support for Powell, telling her to 'stay in her New Zealand lane'.
