JPMorgan Chase CEO Jamie Dimon expressed support for Federal Reserve Chair Jerome Powell after news of a criminal investigation into Powell’s congressional testimony. Dimon, along with other Wall Street CEOs, emphasized the importance of an independent central bank in maintaining economic stability and warned against undermining Fed independence.
A statement signed by three former Fed chairs and four past Treasury secretaries condemned the reported criminal inquiry into Powell as an attack on the Fed’s independence. They argued that such actions have no place in the US and could harm the country’s economic success. Investors and economists also stressed the importance of an independent central bank in preventing inflation.
Bank of New York Mellon CEO Robin Vince echoed Dimon’s concerns about Fed independence, emphasizing its significance in underpinning the US bond market. Rising bond yields could lead to increased borrowing costs for consumers, potentially impacting housing affordability and counteracting government policies aimed at lowering mortgage rates.
Some experts warn that President Trump’s use of criminal subpoenas to pressure the Fed could undermine the central bank’s independence and control over inflation expectations. Former Goldman Sachs CEO Lloyd Blankfein criticized the approach, suggesting it could lead to negative consequences for both the Fed and the Justice Department. JPMorgan CFO Jeremy Barnum emphasized the potential economic damage from a loss of Fed independence. 1. The stock market experienced a significant drop today, with the Dow Jones Industrial Average falling by over 500 points. Investors are concerned about rising inflation and interest rates impacting the economy.
2. A new study published in a medical journal revealed that the Pfizer-BioNTech COVID-19 vaccine is highly effective in preventing severe illness and hospitalization caused by the Delta variant. The study included data from over 40,000 individuals.
3. The United Nations released a report warning that climate change is accelerating at an alarming rate, with devastating consequences for the planet. The report called for urgent and ambitious action to reduce greenhouse gas emissions and limit global warming to 1.5 degrees Celsius.
4. The Tokyo Olympics officially came to a close, with the United States finishing on top of the medal table. The Games were marked by strict COVID-19 protocols, empty stadiums, and several standout performances by athletes from around the world.
5. Apple announced the release of the iPhone 13, featuring improved cameras, longer battery life, and a faster processor. The new lineup also includes the iPhone 13 Mini, iPhone 13 Pro, and iPhone 13 Pro Max, with pre-orders set to begin next week.
Read more at Yahoo Finance: ‘Everyone we know believes in Fed independence’