JPMorgan Chase CEO Jamie Dimon issued a stern warning about preserving the Federal Reserve's independence as former President Donald Trump intensifies pressure on Chair Jerome Powell.

Dimon emphasized that "Fed independence is crucial—not just for my good friend Chair Powell, but equally for his successor." His remarks followed Treasury Secretary Steven Mnuchin's Tuesday disclosure that the administration has initiated the process to evaluate candidates for the next Fed chair, noting qualified contenders exist both inside and outside the institution.

Central bank autonomy, economists widely agree, serves as a stabilizing force for the economy by shielding monetary policy from political interference. Dimon cautioned that political maneuvering around the Fed often "backfires, producing outcomes contrary to original intentions." Compromised independence could lead to short-sighted policymaking, delayed actions, and heightened financial market volatility, experts warn.

Trump reignited his criticism of Powell over the weekend, declaring the Fed chair "very bad for the country" and suggesting his resignation would benefit America. "We should have the lowest rates anywhere—he just won't do it," Trump asserted regarding interest rate cuts. Powell maintains that future rate decisions will remain data-dependent, a stance reinforced by June's CPI report showing resurgent inflation that tempered market expectations for imminent easing.

The banking titan's intervention carries significant weight given Dimon's stature as head of the world's largest bank and his reputation as a financial sector authority. Earlier last week, Dimon diverged from market consensus by suggesting a 40-50% probability of further rate hikes—double the 20% odds priced by traders.

Powell's term as chair extends through May 2026, after which he could retain his position as a Fed governor. However, Mnuchin stated Powell should relinquish his governorship upon concluding his chairmanship.