JP Morgan boss says Trump attacks on Federal Reserve could push up inflation

Core Viewpoint - Jamie Dimon, CEO of JP Morgan, has expressed concerns that Donald Trump's attacks on Federal Reserve Chair Jerome Powell could jeopardize the independence of the central bank, potentially leading to increased interest rates and inflation [1][3]. Group 1: Federal Reserve and Investigations - Dimon has shown "enormous respect" for Powell, who is currently under a controversial criminal investigation by the US Department of Justice regarding alleged misuse of taxpayer funds related to a $2.5 billion renovation of the Fed's headquarters [2]. - Powell has condemned the investigation as retaliation for not aligning interest rate decisions with the preferences of the President [2]. Group 2: Central Bank Independence - Dimon emphasized the importance of Federal Reserve independence, stating that any actions undermining it could have adverse effects, including raising inflation expectations and increasing interest rates over time [3]. - A coalition of ten central bank governors, including those from the Bank of England and the European Central Bank, has publicly supported Powell amid Trump's criticisms [4]. Group 3: JP Morgan's Financial Performance - JP Morgan reported a 7% decline in fourth-quarter profits, amounting to $13 billion, attributed to a one-off cost from acquiring a credit card partnership with Apple, previously held by Goldman Sachs [6]. - The announcement of this deal coincided with Trump's call for a 10% cap on credit card interest rates, which has negatively impacted shares of major credit card providers [6]. Group 4: Market Conditions and Risks - The credit card market is described as highly competitive, with potential regulatory caps posing risks not only to company profits but also to consumer access to credit, particularly affecting those in need [8]. - JP Morgan's CFO indicated that the company is preparing for various contingencies in light of these market dynamics [7].