Former US President Donald Trump has publicly criticised Jamie Dimon, the chief executive of banking giant JP Morgan, branding him "wrong" for defending the independence of the Federal Reserve. The clash comes amid a Justice Department probe into Fed Chair Jerome Powell.
Trump Rejects Concerns Over Fed Pressure
In a sharp rebuke, Trump dismissed Dimon's warnings that undermining the central bank's autonomy could have negative economic consequences. "I think he's wrong," Trump stated, adding, "I think it's fine what I'm doing. And we have a bad Fed person."
The billionaire banker had expressed "enormous respect" for Powell and cautioned that any action perceived as eroding the Fed's independence was "probably not a great idea." Dimon warned such moves could inadvertently raise inflation expectations and push interest rates higher over time.
Trump also confirmed he plans to announce a potential replacement for Powell, whom he appointed in 2018, within the "next few weeks." The Justice Department's investigation focuses on the renovation costs of the Fed's headquarters and Powell's related testimony.
UK Secures Historic Offshore Wind Power Deal
In a major development for British energy, Secretary of State for Energy Security Ed Miliband has hailed a record-breaking auction for offshore windfarm contracts. The government awarded deals for approximately 12 new projects, securing 8.4 gigawatts (GW) of clean energy capacity.
This landmark agreement will generate enough electricity to power more than 12 million UK homes by 2030. The contracts were secured at a price between £89.49 and £91.20 per megawatt-hour in 2024 terms.
Miliband declared the auction a "historic win" for UK energy sovereignty. "We are taking back control of our energy sovereignty," he said, emphasising the move away from reliance on foreign energy markets. He noted the price was 40% lower than the cost of building and operating a new gas plant, promising lower bills and thousands of new British jobs.
Implications and Market Agenda
The transatlantic dispute highlights ongoing tensions between the US political establishment and financial institutions over central bank policy. Meanwhile, the UK's wind power surge marks a significant step towards its 2030 clean power target.
Key events for the financial day include:
- Bank of England speech by Alan Taylor in Singapore.
- Launch of the World Economic Forum's Global Risks Report 2026.
- Full-year results from major US banks: Wells Fargo, Bank of America, and Citigroup.
