Trump Slams Jamie Dimon's Comments On Fed Independence And Credit Card Rate Cap: 'Maybe He Makes More Money...'

President Donald Trump reiterated that the interest rates should be lowered, dismissing warnings by JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon about the potential negative effects of political interference with the Federal Reserve.

“Jamie Dimon probably wants higher rates. Maybe he makes more money that way,” stated Trump while speaking to reporters at Joint Base Andrews in Maryland on Tuesday.

He also slammed Dimon for his take on the 10% interest rate cap on credit cards that Trump has called for. “Whether it’s Jamie Dimon or anybody else,” people paying 28% interest should be protected and banks charging 28% to 35% interest should provide a break for at least a year, Trump said.

Dimon Defends Fed, Warns On Credit Caps

Dimon, on Tuesday, defended the Federal Reserve, warning that any political interference with the central bank’s independence is “not a good idea” and could lead to inflation and a rise in interest rates, contradicting Trump’s goal of lowering rates. However, he added that he doesn’t agree with everything the Fed does.

On the same lines, the DOJ's criminal probe into Powell has alarmed some Republicans, who warn that this could drive interest rates higher instead of lowering them.

Meanwhile, the bank’s fourth-quarter earnings report revealed a resilient U.S. economy, with sustained consumer spending despite a 7% year-over-year decrease in net income. “Card is one example of patient and thoughtful deployment of our excess capital into attractive opportunities,” stated Dimon.

The bank’s CFO, Jeremy Barnum, warned that Trump’s proposal to cap credit card interest rates could have a significant “negative consequence” on the credit markets and could be counterproductive, potentially reshaping the nature and provision of credit services.

“It would be dramatic on subprime,” added Dimon, speaking to analysts during the earnings call on Tuesday.

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