President Donald Trump has escalated his attacks on Federal Reserve Chair Jerome Powell demanding deep interest rate cuts and publicly criticizing the Fed’s decision to hold rates steady. Trump called Powell stubborn and even a moron urging the board to assume control of the central bank. He also questioned the Fed’s costly headquarters renovation suggesting possible fraud. Trump cannot legally remove Powell for policy differences but supporters say his actions aim to build a pretext for dismissal.
Amid mounting political pressure Dimon has defended the Fed’s autonomy as essential to market trust and economic stability. He cautioned that interfering with central bank policy could produce unintended economic damage including inflation and market volatility. Dimon reiterated the importance of separating political influence from monetary decisions, arguing such separation has kept the economy credible.
The two men have recently resumed private conversations after a prolonged freeze in their relationship. Dimon had secret meetings with Trump at the White House to discuss trade deals regulation housing and interest rates. The meetings mark a shift in tone and reflect a pragmatic willingness to engage despite past tensions over tariffs and election commentary.
Meanwhile the Fed maintains current interest rate targets between four point two five and four point five percent while monitoring inflation risks. Powell has reaffirmed he will complete his term which extends through May twenty twenty six. Both Wall Street and financial leaders warn that any attempt to undermine the Fed’s independence could lead to rising bond yields dollar weakness and increased economic risk.
