Republican presidential candidate Donald Trump recently made headlines by revealing his plans for key economic positions should he win the 2024 election. In a series of interviews, Trump indicated he would allow Federal Reserve Chair Jerome Powell to finish his term and expressed interest in JPMorgan Chase CEO Jamie Dimon as a potential Treasury Secretary.
In an interview with Bloomberg Businessweek, Trump stated, "I would let him [Powell] serve it out, especially if I thought he was doing the right thing." Powell's term as chair ends in May 2026, with his position on the Fed board extending until 2028. This marks a significant shift from Trump's previous tenure, during which he frequently criticized Powell and even threatened to fire him, calling him a "bonehead" for raising interest rates.
Trump also issued a cautionary note to the Federal Reserve, warning against cutting interest rates before the November election. "It's something that they know they shouldn't be doing," Trump remarked, highlighting concerns that such a move could boost the economy and, by extension, benefit President Joe Biden's re-election campaign. Wall Street analysts currently anticipate two rate cuts by the end of the year, with the first expected in September.
The relationship between Trump and Powell has been tumultuous. Despite nominating Powell to lead the central bank in 2017, Trump broke with precedent by not reappointing Janet Yellen, Obama's nominee, for a second term. During a February interview with FOX Business' Maria Bartiromo, Trump reiterated his reluctance to reappoint Powell, accusing him of being politically motivated and favoring the Democrats.
The Fed has sharply raised interest rates in 2022 and 2023, bringing them to their highest levels in over two decades to curb inflation. This policy has led to higher rates on consumer and business loans, impacting everything from mortgage rates to credit card interest. The average rate on 30-year mortgages has risen above 8% for the first time in decades.
In another notable development, Trump is considering JPMorgan Chase CEO Jamie Dimon for the position of Treasury Secretary. This consideration follows a meeting with top U.S. executives, where Trump expressed his respect for Dimon. "I have a lot of respect for Jamie Dimon," Trump said in his Bloomberg interview.
Dimon, who has led JPMorgan for two decades, has been a prominent figure in the financial sector. In a memo to JPMorgan employees, Dimon called for unity against hate, intimidation, and violence following the assassination attempt on Trump at a Pennsylvania campaign rally. Although Dimon has consistently denied any aspirations to run for office, he hasn't entirely ruled out public service
"I love my country, and maybe one day I'll serve my country in one capacity or another," Dimon told Bloomberg last year. "But I love what I do. I think JPMorgan does a great job for helping Americans, for helping countries around the world. And this is my job. This is what I'm gonna do, and I'm quite happy doing it."
