Trump back on speaking terms with world's most powerful banker and it's good news for your money
Dimon, the CEO of JPMorgan Chase, reportedly met with Trump twice in the last couple of months, according to The Wall Street Journal.
Dimon is said to have visited the White House last week where he discussed the economy, trade and financial regulations with the President, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick.
During the meeting Dimon reportedly congratulated Trump on his new trade deal with Japan, people familiar with the matter told the outlet.
The pair also discussed interest rates, a topic they have publicly disagreed on.
Dimon has vocally supported Federal Reserve chairmain Jerome Powell and expressed the need for the central bank to remain independent.
Trump, on the other hand, has spent months pressuring Powell to cut rates, and has threatened to fire him or appoint a shadow chair.
The independence of the Fed — which sets benchmark interest rates that influence everything from mortgage costs to stock prices — is seen by Wall Street as vital for market stability.
Dimon's support for the Fed and Powell could help to keep the President in check and reduce the likelihood of a rash decision to remove Powell, which could hit Americans' 401(K)s and housing costs.
In last week's meeting Dimon reportedly told Trump he believed that interest rates could come down if the economy is sufficiently strong.
Treasury Secretary Bessent has tried to carry the same message to Trump in the past, according to the publication.
The Fed once again held rates steady on Wednesday after better-than-expected economic data released in the morning.
Trump used the opportunity to demand rates be lowered.
'MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!' the president wrote in a post on his social media site Truth Social.
Dimon and Trump also reportedly discussed the shortage of affordable housing and the impact of post-financial crisis regulations of homeownership, the Journal reported.
Prior to their recent détente Trump and Dimon have traded insults publicly.
Fed chair Jerome Powell has been under attack from Trump over interest rates
Dimon resigned from a council of leaders after Trump's comments about a white supremacist rally during his first term in office.
The banker also compared Trump's baseless accusations of election fraud in 2020 to treason.
Trump later called Dimon 'highly overrated' in 2023 and has accused JPMorgan of 'debanking' conservatives.
'Jamie and everybody, I hope you're going to open your banks to conservatives, because what you're doing is wrong,' he said in January.
Dimon has also been critical of Trump's aggressive trade policies, claiming they could be inflationary and slow down growth.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
23 minutes ago
- Reuters
Onsemi posts quarterly revenue drop, sees dull third-quarter profit on market uncertainty
Aug 4 (Reuters) - U.S. automotive chipmaker Onsemi on Monday forecast lackluster profit for the third quarter, after reporting a sharp decline in second-quarter revenue, sending its shares down by more than 10%. Sales growth in battery electric vehicles has slowed due to an uncertain economic environment, brought on by global import duties, and elevated borrowing costs in the U.S. Consumers have hit the breaks on big-ticket spending as tariffs threaten to increase the costs of automobiles by thousands of dollars and drive up inflation. This has been forcing automakers to reassess production plans and withhold financial investments, affecting companies such as Onsemi. The company acknowledged during its earnings call that the EV market remains soft, especially in North America and Europe, with recovery being slower than hoped. However, Onsemi said it sees "signs of stabilization" across its end markets, after a prolonged slump in demand due to excess chip supply. The company is among a select group of suppliers providing silicon carbide chips, which are critical for extending the range of EVs. It added that it has not yet seen a broad-based recovery in automotive and expects only low single-digit growth in the third quarter. An end to the $7,500 federal tax credit for electric cars has also cast a cloud over the EV industry's outlook, with some firms expecting a hit to the market growth, opens new tab. Onsemi expects third-quarter adjusted earnings between 54 cents and 64 cents per share, compared with analysts' average estimate of 59 cents, according to data compiled by LSEG. It forecast revenue of $1.47 billion and $1.57 billion for the third quarter, the midpoint of which is slightly above estimates of $1.50 billion. The company's second-quarter revenue of $1.47 billion beat expectations of $1.45 billion, but fell about 15% from a year ago.
Reuters
23 minutes ago
- Reuters
Oil falls as OPEC+ output hike adds to oversupply concerns
NEW YORK/LONDON, Aug 4 (Reuters) - Oil prices fell to their lowest in a week on Monday after OPEC+ agreed to another large output increase in September, adding to oversupply concerns after U.S. data showed lacklustre fuel demand in the top consuming nation. Brent crude futures fell 43 cents, or 0.6%, to $69.24 a barrel by 11:39 a.m. ET (1539 GMT), while U.S. West Texas Intermediate crude declined by 48 cents, or 0.7%, to $66.85 a barrel. Both contracts were down more than 2% earlier in the session and hit the lowest in a week, after declining close to 3% on Friday. The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day (bpd) for September. The latest in a series of accelerated output increases aimed at capturing market share was in line with market expectations and marks a full and early reversal of the group's largest tranche of output cuts, amounting to about 2.5 million bpd, or about 2.4% of global demand. While the group cited healthy market fundamentals to back its decision, data released by the U.S. government last week showed the weakest gasoline demand in May, the start of the country's summer driving season, since the COVID-19 pandemic of 2020. The data also showed U.S. oil production at a monthly record in May, adding to global oversupply concerns. Oil traders are now hedging for the possibility of further supply increases from OPEC+, with potential discussions to unwind a further 1.65 million bpd of cuts at the group's next meeting on September 7 adding pressure to oil prices. "OPEC+ retains a substantial amount of spare production capacity, and markets are now watching closely to see whether the group will tap into it," StoneX analyst Alex Hodes said. "So far, there are no clear signals that OPEC+ intends to deploy this additional capacity, but the possibility remains on the table," he added. Analysts at Goldman Sachs expect that the actual increase in supply from the eight OPEC+ countries that have raised output since March will be 1.7 million bpd because other members have cut output after overproducing. Investors also continued to digest the impact of the latest U.S. tariffs on exports from dozens of trading partners and remain wary of further U.S. sanctions on Russia. U.S. President Donald Trump has threatened to impose 100% secondary tariffs on Russian crude buyers as he seeks to pressure Moscow into halting its war in Ukraine. Trump on Monday said he will substantially raise tariffs on India over its purchases of Russian oil, after two Indian government sources told Reuters over the weekend that the country will keep buying oil from Moscow despite Trump's threats. That helped limit oil's losses. About 1.7 million bpd of crude supply will be at risk if Indian refiners stop buying Russian oil, ING analysts said in a note.
Times
24 minutes ago
- Times
Kate Forbes choosing family over Holyrood leaves a vacuum in the SNP
T here are not many public figures in Scotland whose loss to politics can be regarded as a calamity. Kate Forbes's decision to stand down as deputy first minister and MSP at the next election, is not just a blow to the SNP — a party singularly lacking in sound business sense and independent thinking — it diminishes Holyrood as well. Hers was a voice in parliament worth listening to, whether explaining the balance between religious belief and political affiliation, or setting out the path for a faltering economy. Her partnership with the first minister John Swinney was a strong one, and together, in the run-up to next year's Scottish elections, they would have offered a powerful challenge to their opponents, including a rampant Reform party.
