JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said that the US Justice Department’s attacks on the Federal Reserve have the potential to undermine the independence of the central bank and possibly boost borrowing costs.
“Everyone we know believes in Fed independence,” Dimon said Tuesday on a conference call with members of the media after his company reported fourth-quarter earnings. “And anything that chips away at that is probably not a great idea. And in my view, will have the reverse consequences. It’ll raise inflation expectations and probably increase rates over time.”
President Donald Trump’s administration ratcheted up the pressure on Federal Reserve Chair Jerome Powell earlier this week. The Justice Department served grand jury subpoenas to the central bank over Powell’s testimony to Congress on the ongoing renovations of the Fed’s headquarters.
“I do have enormous respect for Jay Powell, the man,” Dimon said on the media call.
The Justice Department’s move stoked concerns about the Fed’s independence and caused Trump to face