Trump and JPMorgan CEO Dimon Meet to Discuss Economy and Fed Policy

President Donald Trump and JPMorgan Chase CEO Jamie Dimon met at the White House last week, discussing the economy, trade, financial regulation, and Federal Reserve policy. The meeting included Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, marking a significant development in the relationship between two influential figures who have previously exchanged public criticisms.

According to reports, Dimon has met with Trump twice in the past two months. During their conversations, the banking executive defended Federal Reserve Chair Jerome Powell and emphasized that historical attempts to politically influence interest rates often produce negative consequences. This discussion comes as the Powell-led Federal Reserve has maintained steady interest rates for five consecutive meetings, despite White House pressure to reduce borrowing costs.

The relationship between Trump and Dimon has been characterized by public disagreements over the years. In 2023, Dimon stated that Trump lacked understanding of the debt ceiling, while Trump has previously described Dimon as an "overrated globalist" and questioned his intelligence. When asked about their improving relationship, Dimon noted that regular communication between business leaders and administration officials is standard practice.

Regarding economic policy, Dimon's position on Trump's tariffs appears to have evolved. While he warned in April that high tariffs would slow economic growth, he recently acknowledged that the implementation has been "more carefully done" than during the previous rollout. The Federal Reserve's next steps remain uncertain, with market expectations for a September rate cut declining from 65% earlier in the week to 39% on Thursday, according to the CME FedWatch Tool.

Powell's term as Federal Reserve Chair expires in May 2026, giving the president an opportunity to select a new chair at that time. Dimon expressed support for central bank independence, suggesting that maintaining this principle historically contributes to lower interest rates. He indicated that if inflation continues to decrease while the economy performs well, the Federal Reserve would likely reduce rates in the near future.