Trump Defends Powell Probe, Defies Wall Street Warnings on Fed Independence
US President Donald Trump reiterated his support for the Justice Department investigation into Federal Reserve Chair Jerome Powell, dismissing criticism from JPMorgan Chase CEO Jamie Dimon who warned that the move could undermine the central bank’s independence.
Trump said he believes his actions are “right” and signaled that a replacement for Powell would be announced in the coming weeks despite growing objections from financial and political circles.
Dimon had cautioned that any erosion of Fed independence could boost inflation expectations and lead to higher interest rates, a view echoed by several banking executives including the CEO of Bank of New York who argued that uncertainty around monetary policy could raise borrowing costs for Americans.
Trump also defended his proposal to cap credit card interest rates at 10 percent for one year, a measure banks say could restrict credit availability and harm reward programs.
The dispute unfolds at a delicate moment for markets as investors watch how the new administration will handle monetary policy and the role of the Federal Reserve, while some lawmakers have threatened to block new appointments until the investigation is resolved.
Trump said he believes his actions are “right” and signaled that a replacement for Powell would be announced in the coming weeks despite growing objections from financial and political circles.
Dimon had cautioned that any erosion of Fed independence could boost inflation expectations and lead to higher interest rates, a view echoed by several banking executives including the CEO of Bank of New York who argued that uncertainty around monetary policy could raise borrowing costs for Americans.
Trump also defended his proposal to cap credit card interest rates at 10 percent for one year, a measure banks say could restrict credit availability and harm reward programs.
The dispute unfolds at a delicate moment for markets as investors watch how the new administration will handle monetary policy and the role of the Federal Reserve, while some lawmakers have threatened to block new appointments until the investigation is resolved.
