Trump says Jamie Dimon wrong to warn that DOJs Jerome Powell probe threatens Fed independence

President Trump lashed out at JPMorgan Chase boss Jamie Dimon on Tuesday, flatly dismissing the Wall Street titan as “wrong” for warning that the Justice Department’s criminal probe of Federal Reserve Chair Jerome Powell threatens the central bank’s independence.“I think he’s wrong,” Trump said when asked about Dimon’s criticism, defending the Justice Department’s investigation and insisting his administration was not undermining the Federal Reserve, even as the probe has sparked market turmoil and drawn bipartisan backlash.“I think it’s fine what I’m doing.And we have a bad Fed person,” the president said.Trump doubled down on his attacks against Powell, arguing that interest rates should be sharply lower and suggesting Dimon’s defense of the Fed was driven by self-interest.“We should have lower interest rates,” Trump said during remarks Tuesday, adding that Dimon “probably wants higher rates” and suggesting the JPMorgan chief executive benefits from elevated borrowing costs.Dimon, the head of the nation’s largest bank, had warned earlier that any move that chips away at the Fed’s independence could backfire, raising inflation expectations and ultimately pushing interest rates higher.“Everyone we know believes in Fed independence,” Dimon told reporters Tuesday.“Anything that chips away at that is probably not a good idea.

In my view, it will have the reverse consequences.It will probably raise inflation expectations and probably increase rates over time.”Trump also said he would press ahead with plans to name Powell’s replacement within weeks, despite the backlash to the probe from Wall Street executives and Republican lawmakers.Sen.

Thom Tillis (R-NC), who sits on the powerful Senate Banking Committee, has vowed to block any new Federal Reserve nominees until the investigation is resolved.Other executives echoed Dimon’s concerns, warning that threatening the Fed’s autonomy could rattle bond markets and underm...