Trump says Jamie Dimon ‘flawed’ to warn against DOJ probe of Jerome Powell

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 requested 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.

President Trump lashed out at JPMorgan Chase boss Jamie Dimon on Tuesday, flatly dismissing the Wall Street titan as “wrong.” Getty Images

Trump doubled down on his assaults against Powell, arguing that rates of interest must be sharply decrease and suggesting Dimon’s protection of the Fed was pushed by self-interest.

“We should have lower interest rates,” Trump said during remarks Tuesday, including that Dimon “probably wants higher rates” and suggesting the JPMorgan chief government advantages from elevated borrowing prices.

Dimon, the head of the nation’s largest bank, had warned earlier that any transfer that chips away at the Fed’s independence may backfire, raising inflation expectations and finally pushing rates of interest increased.

“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 call Powell’s substitute within weeks, despite the backlash to the probe from Wall Street executives and Republican lawmakers.

Jamie Dimon, the head of the nation’s largest bank, had warned earlier that any transfer that chips away at the Fed’s independence may backfire. AP

Bank of New York Mellon CEO Robin Vince has also voiced fear over the probe into Powell. REUTERS

Sen. Thom Tillis (R-NC), who sits on the highly effective Senate Banking Committee, has vowed to block any new Federal Reserve nominees until the investigation is resolved.

Other executives echoed Dimon’s considerations, warning that threatening the Fed’s autonomy may rattle bond markets and undermine confidence, with Bank of New York Mellon CEO Robin Vince cautioning that political strain on the central bank dangers pushing rates of interest increased moderately than decrease.

“Independent central banks with the ability to independently set monetary policy in the long-term interests of the nation is a pretty well-established thing that we’ve seen all around the world over a very long period of time,” Vince told reporters Tuesday.

“Let’s not shake the foundation of the bond market ⁠and potentially do something that could cause interest rates to actually get pushed up because somehow there’s ‍lack of confidence in the Fed’s independence.”

Federal Reserve Chair Jerome Powell faces a Justice Department legal probe tied to his congressional testimony on the Fed’s headquarters renovation. REUTERS

Other Wall Street big shots echoed the sentiment.

“The attempt to kill the Fed’s independence by criminal investigation is not good for that institution, and maybe even worse for the Justice Department,” former Goldman Sachs CEO Lloyd Blankfein wrote on X.

“Feels like an attempt at murder-suicide.”

The Justice Department investigation centers on Powell’s June testimony to Congress about the Federal Reserve’s $2.5 billion renovation of its Washington headquarters, including whether or not he misled lawmakers about the project’s scope and price.

Prosecutors have reviewed Powell’s public statements and internal Fed spending records after Republicans accused him of downplaying luxurious options that appeared in earlier planning paperwork.

The Marriner S. Eccles Federal Reserve Board Building undergoes a $2.5 billion renovation now under scrutiny by federal prosecutors. REUTERS

Powell has forcefully rejected the allegations, confirming that the Fed was served with grand jury subpoenas and calling the probe “unprecedented.”

He has said the renovation is funded totally by the central bank, not taxpayers, and warned the investigation threatens the Fed’s ability to set rates of interest free from political strain.

Trump, who nominated Powell during his first time period, has defended the probe as a matter of accountability, accusing the Fed chair of incompetence and insisting the investigation has nothing to do with financial coverage.

JPMorgan has declined to remark.

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