JP Morgan CEO Jamie Dimon sends message to Donald Trump at earnings call of the America’s biggest bank
Jamie Dimon, chairman and CEO of JPMorgan Chase delivered a pointed message to US President Donald Trump during the bank’s second-quarter earnings call. Dimon cautioned that the trade polices of Donald Trump especially the tariffs pose ‘significant risks’ to the US economy. Dimon emphasised on the critical importance of the Federal Reserve’s independence and also cautioned against any interference with its operations.
JP Morgan CEO Jamie Dimon warns Donald Trump on tariffs
While not directly naming Trump, Dimon’s remarks were widely interpreted as a direct address to the US President. During the earnings call, Dimon praised the tax reforms and the potential deregulation as positives. However, Dimon also warned that some of the tariffs, trade uncertainty and ongoing geopolitical tensions could hamper the economic resilience. “The finalization of tax reform and potential deregulation are positive for the economic outlook,” Dimon said, “however, significant risks persist—including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices”.Dimon’s remarks come during the time when Trump may seek to replace Federal Reserve Chair Jerome Powell, a move which is strongly being opposed by Dimon. “The independence of the Fed is absolutely critical,” he said, adding that “playing around with the Fed can often have adverse consequences—the absolute opposite of what you might be hoping for”.
Donald Trump hits out at US Fed Chair Jerome Powell
US President Donald Trump has targeted US Fed Chairman Jerome Powell by calling him ‘incompetent’. In the past also Trump has called out Powell for not cutting rates and also called him a ‘numbskull’ and Mr ‘Too Late’.Trump also posted about Powell in a social media post on Truth Social, “Too Late” Jerome Powell, of the Fed, will be in Congress today in order to explain, among other things, why he is refusing to lower the Rate. Europe has had 10 cuts, we have had ZERO. No inflation, great economy – We should be at least two to three points lower. Would save the USA 800 Billion Dollars Per Year, plus. What a difference this would make. If things later change to the negative, increase the Rate. I hope Congress really works this very dumb, hardheaded person, over. We will be paying for his incompetence for many years to come. THE BOARD SHOULD ACTIVATE. MAKE AMERICA GREAT AGAIN!” wrote Trump.
JPMorgan reported a profit of $14.2 billion
JPMorgan reported a profit of $14.2 billion for the quarter. US second largest bank beat the Wall Street expectations despite a dip from last year. Dimon credited strong performance in the bank’s division for the growth. Despite the increase in profit, Dimon also emphasised on the macroeconomic risks that stem from political decisions.
