JPMorgan Chase CEO Jamie Dimon issued a warning to President Donald Trump after his continued attacks on Federal Reserve Chairman Jerome Powell.
The New York Times reported Tuesday that when Dimon spoke to reporters, he cautioned that consequences could be forthcoming if Trump doesn't cool it.
“Playing around with the Fed can often have adverse consequences — the absolute opposite of what you might be hoping for,” said Dimon after the release of the quarterly earnings report.
“I think the independence of the Fed is absolutely critical,” he noted.
The Wall Street Journal noted that, thus far, Trump has escaped a market freakout over his attacks on Powell.
"One reason: Investors think that such a move would be counterproductive to Trump’s aim of lowering borrowing costs because it would cause a selloff in Treasurys, driving their yields higher," the report claimed. "Those set a floor on interest rates across the economy, including those on mortgages, student loans and corporate bonds."
Trump's lender, Deutsche Bank, made a darker prediction if Trump were to fire Powell: "Both the currency and the bond market can collapse."
