Trump backs DOJ Fed probe, attacks Dimon over | Political News
President Donald Trump has countered JPMorgan Chase CEO Jamie Dimon’s critique of the Department of Justice’s investigation into the Federal Reserve, particularly concerning Chair Jerome Powell.
Earlier on Tuesday, during a telephone call with reporters, Dimon had expressed concern that the DOJ’s probe into Powell might set off elevated inflation and rates of interest.
While discussing his company’s fourth-quarter earnings, Dimon said that “anything that chips away” at the independence of the central bank “is probably not a good idea,” as reported by a number of sources.
“I want to say that I don’t agree with everything the Fed has done,” Dimon acknowledged. “I do have enormous respect for Jay Powell, the man.”
Moreover, he forecast on Tuesday that the investigation into Powell won’t lead to the central bank decreasing charges. On the opposite, he predicted, it “will have the reverse consequence.
“It will raise inflation expectations and in all probability increase charges over time,” he concluded.
On Sunday night, Powell revealed that the Justice Department issued a subpoena to the central bank on Friday, “threatening a legal indictment associated” to Powell’s Senate testimony last June regarding the projected $2.5 billion renovation of Federal Reserve office buildings.
The renovation cost had escalated from an initial estimate of $1.9 billion due to alterations in the building design and higher-than-expected construction costs, according to the Fed.
This action marks a significant intensification in President Donald Trump‘s conflict with the Fed, an independent entity he has consistently criticized for not reducing its key interest rate as swiftly as he would like. In a video statement, Powell claimed that the threat of criminal charges is a “pretext” intended to undermine the Fed’s autonomy in setting interest rates.
“This is about whether or not the Fed might be ready to continue to set rates of interest based on evidence and financial circumstances or whether or not instead financial coverage might be directed by political stress or intimidation,” said Powell.
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