JPMorgan CEO takes sides in Trump vs. Powell feud: 'Independence of the Fed is absolutely critical'

Jamie Dimon, CEO of JPMorgan Chase, has officially taken sides in the dispute over interest rates between President Donald Trump and Federal Reserve Chair Jerome Powell.

After the White House ramped up its criticism of Powell for not lowering interest rates, an explicit request from President Trump, Dimon warned that it is critical for the Fed to maintain its independence.

“I think the independence of the Fed is absolutely critical,” Dimon told reporters after the bank released its quarterly results. “Playing around with the Fed can have adverse consequences, the absolute opposite of what you might be hoping for.”

Dimon's remarks came just after Treasury Secretary, Scott Bessent told Bloomberg this Tuesday thathe initiated the "formal process" to find Jerome Powell's successor.

"There are a lot of good candidates inside and outside the Federal Reserve," Bessent said.

The speculation surrounding Powell's leadership and a potential move by Trump to force his resignation comes just as year-over-year inflation rose to 2.7% in June, as reported by the Department of Labor.

While analysts attribute the rise in inflation to the context of tariffs and trade uncertainty resulting from President Trump's measures, the Republican leader himself reacted with annoyance to the data, again urging Powell to cut interest rates.

"Fed should cut Rates by 3 Points. Very Low Inflation. One Trillion Dollars a year would be saved!!!" the chairman posted.

Dimon's words also come as a surprise because, although he was a major critic of Trump during his first term, in recent months he has chosen to praise the president and, on many occasions, moderate his criticism.

However, the stance is historically consistent with the Wall Street line in general, where an unrestricted endorsement of preserving an apolitical Fed free from White House interference.