Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - President Trump has officially pushed back against criticism from JPMorgan Chase & Co. CEO Jamie Dimon regarding the DOJ probe. This tension marks a fresh chapter in the massive shake-up of the U.S. central bank leadership.
Key Takeaways
-
Trump plans to announce Jerome Powell’s replacement within the next few weeks.
-
Fed independence is under fire following probes into headquarters renovation and testimony.
-
A proposed 10% credit card interest cap risks limiting credit access for many.
Read also: Netflix Goes All-In with Cash for Warner Bros Deal
Trump argued that his actions are necessary because the current leadership under Jerome Powell is inadequate. He firmly stated that the DOJ investigation into Powell is a legally sound and appropriate move.
According to a report from Bloomberg, Jamie Dimon previously voiced serious concerns over political meddling in the Fed. Dimon warned that chipping away at central bank autonomy will likely trigger higher inflation expectations.
Higher long-term interest rates are expected to follow if the market loses its confidence in the Fed. Dimon emphasized that monetary stability relies on the central bank being free from any executive pressure.
Impact on the Banking Sector and Markets
Trump remains determined to replace Powell despite facing significant pushback from within his own Republican party. Senator Thom Tillis has even threatened to block all new Fed nominations until the matter is settled.
Another controversial policy in the spotlight is the proposal to cap credit card interest rates at 10 percent. Trump aims to protect consumers who are currently struggling with interest rates as high as 28 percent.
Banking industry players warned that this move could effectively kill popular reward programs and loyalty schemes. Additionally, access to credit for lower-middle-class citizens might become much harder to obtain in the future.
Key Factors to Watch Next
The market is now anxiously waiting for the name of Powell's successor to be announced by Trump soon. This decision will dictate the future of U.S. monetary policy and the stability of the dollar.
Read also: US Inflation Steady at 2.7%: The Fed Shifts Focus to Jobs
Political uncertainty in Washington could potentially spark higher volatility across global equity and bond markets. Investors should stay alert to whether Congress will actually greenlight the proposed intervention in banking rates.
Reference:
-
Bloomberg, Trump Says Dimon ‘Wrong’ to Criticize DOJ Probe of Fed’s Powell. Accessed on January 14, 2026
-
Featured Image: Shutterstock
