Jamie Dimon Warns DOJ Pressure on Fed Chair Powell Could Backfire, Fueling Inflation and Higher Rates

JPMorgan Chase CEO Jamie Dimon warned that recent pressure from the U.S. Department of Justice (DOJ) on Federal Reserve Chair Jerome Powell could undermine confidence in the Federal Reserve’s independence and have unintended economic consequences. The DOJ’s grand jury subpoena relates to Powell’s testimony about a costly renovation of the Federal Reserve’s Washington headquarters — a move Powell and critics say is politically motivated amid disputes over interest rate policy. Dimon stressed that the Fed’s autonomy is vital to maintaining stable inflation expectations. He argued that eroding this independence could actually raise inflation expectations and push interest rates higher over time, counteracting central bank efforts and broader economic stability. Despite declining profits at JPMorgan, Dimon reiterated his respect for Powell even as he acknowledged he does not agree with every Fed policy. U.S. stock markets remained surprisingly resilient after the subpoena news, but Dimon cautioned that investors may be overlooking longer‑term risks including sticky inflation, geopolitical tensions, and elevated asset prices. #FederalReserve #JamieDimon #InflationRisk #FedIndependence #SlimScan #GrowthStocks #CANSLIM