Wall Street’s First Big Voice Takes a Stand — JPMorgan’s Dimon: Fed Independence Is Absolutely Critical

TradingKey - As the standoff between President Trump and Fed Chair Jerome Powell over rate cuts continues, Jamie Dimon, CEO of JPMorgan Chase, has become the first major Wall Street figure to publicly support the independence of the Federal Reserve.

On Tuesday, July 15, during JPMorgan's Q2 earnings call, Dimon stated that the Federal Reserve’s independence is “absolutely critical” — not only for current Chair Powell, whom he respects, but also for any future Fed leadership.

Dimon warned that any interference with the Fed’s autonomy could lead to serious negative consequences.

Over recent months, Trump has repeatedly pressured Powell to cut interest rates immediately — calling for reductions of one to three percentage points, ideally bringing rates below 1%.

He has also mentioned removing Powell from his post, and is reportedly compiling a shortlist of three to four potential successors. Kevin Hassett, director of Trump’s national economic council, hinted last weekend that formal steps toward Powell’s removal may already be underway.

Notably, Hassett himself is seen as a potential candidate for the next Fed Chair.

The investment community broadly agrees that if the Fed’s decision-making becomes politically influenced, it would further erode U.S. exceptionalism, leading to inevitable selloffs in dollar assets — much like the U.S. Treasury market turmoil in April 2025.

In a recent note, Deutsche Bank estimated that if Trump forces Powell out, the trade-weighted U.S. dollar could fall 3–4% within 24 hours, while Treasury yields might rise by 30–40 basis points.

Escalating Pressure on Powell

Beyond rate policy, Trump’s team has begun targeting Powell over alleged irregularities in the Fed’s headquarters renovation spending, accusing him of misleading Congress.

Trump said that if Powell did mislead lawmakers on these expenditures, he should resign immediately.

Dimon’s statement marks a rare but significant moment — when a top Wall Street executive directly defends the central bank’s independence amid growing political pressure.