JPMorgan’s Jamie Dimon Says It’s a Bad Idea to Interfere With the Fed

Summary

---

WSJ What’s News (Jan 13, 2026)

JPMorgan’s Jamie Dimon Says It’s a Bad Idea to Interfere With the Fed

---

Episode Overview

This episode of WSJ’s What’s News explores the major business and political updates of the day, with a primary focus on JPMorgan CEO Jamie Dimon’s forceful defense of Federal Reserve independence following a Justice Department subpoena. Other coverage includes JPMorgan earnings, inflation updates, the latest on US-Iran tensions under President Trump, Supreme Court hearings on transgender athletes in sports, and a South Korean political case.

---

Key Discussion Points & Insights

1. Jamie Dimon Defends the Federal Reserve (00:40–02:53)

• Dimon's Warning: JPMorgan CEO Jamie Dimon publicly criticized suggestions of government interference in the Federal Reserve following a federal subpoena, warning of potential economic fallout.
  • Quote: “Anything that, quote, chips away at the Fed's independence was a bad idea and could have consequences like increasing inflation and interest rates over time.” — Alex Osola, paraphrasing Dimon (00:40)
• Wall Street’s Reaction: WSJ reporter Alexandra Saidi explains that Dimon’s viewpoint “is very representative of...the view among executives in banks, hedge funds, asset managers, that the independence of the Federal Reserve is a third rail, not something you want to interfere with.” (01:54)
• Contextual Comparison:
  • Saidi notes, “As we’ve seen in many countries around the world, when politics become a factor in how central bankers set monetary policy, you lose trust from investors.” (01:58)

---

2. JPMorgan Earnings & U.S. Consumer Health (02:53–04:11)

• Earnings Snapshot: JPMorgan reported a 7% profit drop, driven by a $2.2 billion Apple credit card deal charge and weaker investment banking fees, but still recorded revenue growth.
• Consumer Outlook:
  • Jamie Dimon expresses cautious optimism: “Call it six months and nine months, even a year, you know, that's pretty positive. You know, consumers have money, there's still jobs, even though it's weakened a little bit. There's a huge, there is a lot of stimulus coming from one big beautiful bill.” (03:05)
• Spending & Credit:
  • Alexandra Saidi points out that “90 day plus delinquencies were down versus a year ago on credit cards. Spending is up 7% year over year on debit and credit cards.” (03:21)
  • Consumer sentiment appears strong “across most income groups,” contrary to narratives that only the wealthy are improving. (03:37)

---

3. Inflation Update & Fed's Approach (04:19–05:29)

• Current Numbers: The December inflation rate was steady at 2.7% year-over-year, above the Federal Reserve’s 2% target but not accelerating.
• Outlook:
  • Economics correspondent Harriet Tory: “The December reading isn’t likely to change the Fed’s wait and see posture at its meeting in January because officials probably want to see more evidence that inflation is leveling off before it cut rates further.” (04:39)
• Key Price Increases:
  • “Some key household line items saw some big price increases in December...Food went up by 0.7% from the prior month...rent, some transportation costs. Those...are a bit of a strain for consumers.” — Harriet Tory (05:29)

---

4. Wall Street & Corporate Roundup (05:57–07:09)

• JPMorgan shares dropped 4.2% after results, weighing on the Dow.
• Delta Air Lines aims to boost profits by pushing premium seat sales but fell short of analyst revenue expectations.
• Microsoft pledged to cover higher utility bills for its US data centers powering AI, in response to concerns over electricity costs, drawing praise from President Trump.

---

5. U.S.-Iran Tensions Escalate (07:28–10:26)

• Trump’s Stance:
  • President Trump rules out talks with Iranian officials and encourages Iranians to keep protesting. “I’ve canceled all meetings with the Iranian officials until the senseless killing of protesters stops. And all I say to them is help is on its way.” (07:39)
  • New tariffs imposed on anyone doing business with Iran: “Just went into effect today and I say make Iran great again.” (07:55)
• Situation Overview:
  • 2,000+ deaths reported in Iranian unrest, internet shut down, and increasing crackdowns by Iranian officials.
• Options on the Table:
  • National security reporter Alex Ward: “Trump said no to the diplomatic options, in which case it leaves him with a range of, quote unquote, non kinetic options. So that's cyber attacks, sanctions, basically anything that isn't military force and then also military force.” (08:37)
  • Officials are preparing options for Trump; he hasn’t attended all strategy meetings, so the policy path remains in flux. (08:58)
• Regional Concerns:
  • Gulf states (Saudi Arabia, Oman, Qatar) are lobbying the White House against striking Iran, fearing “more instability in the region” and potential broad conflict escalation. (09:19–09:58)

---

6. Supreme Court Hears Transgender Athlete Cases (10:27–11:30)

• Context: The Supreme Court heard arguments on state bans prohibiting transgender women and girls from competing in female sports, focusing on Idaho and West Virginia.
• Judicial Skepticism:
  • Justice Brett Kavanaugh notes, “I guess given that half the states are allowing it, allowing transgender girls and women to participate, about half are not. Why would we...jump in and try to constitutionalize a rule for the whole country while there's still...uncertainty and debate?” (11:08)
• Ruling Timeline: A decision is expected by early July.

---

7. International & Miscellaneous News (11:30–12:25)

• Greenland: Its leader announces a preference to remain a Danish territory rather than join the U.S. Diplomatic meetings are planned.
• South Korea: Prosecutors seek the death penalty for former President Yoon Suk Yeol on insurrection charges after martial law was imposed in 2024; outcome still pending and executions are rare.

---

Notable Quotes & Memorable Moments

• Jamie Dimon’s warning on Fed independence:
  “Anything that, quote, chips away at the Fed's independence was a bad idea and could have consequences like increasing inflation and interest rates over time.” (00:40)

• Alexandra Saidi on Wall Street’s priorities:
  “The independence of the Federal Reserve is a third rail, not something you want to interfere with.” (01:54)

• Jamie Dimon on the near-term economy:
  “Call it six months and nine months, even a year, you know, that’s pretty positive. You know, consumers have money, there's still jobs, even though it’s weakened a little bit.” (03:05)

• President Trump on Iran:
  “I’ve canceled all meetings with the Iranian officials until the senseless killing of protesters stops. And all I say to them is help is on its way.” (07:39)
  “...make Iran great again.” (07:55)

• Justice Brett Kavanaugh on transgender athlete bans:
  “Why would we...jump in and try to constitutionalize a rule for the whole country while there’s still...uncertainty and debate?” (11:08)

---

Timestamps for Key Segments

| Segment | Timestamps | |---------------------------------------------------|---------------| | Jamie Dimon on Fed Independence | 00:40–02:53 | | JPMorgan Earnings & Consumer Sentiment | 02:53–04:11 | | Inflation Report & Analysis | 04:19–05:29 | | Wall Street & Corporate Roundup | 05:57–07:09 | | U.S.-Iran Tensions & Trump’s Policy | 07:28–10:26 | | Supreme Court: Transgender Athlete Cases | 10:27–11:30 | | Greenland & South Korea Updates | 11:30–12:25 |

---

This episode provides a concise yet insightful look at key financial, economic, and geopolitical topics shaping the day, emphasizing the risks of politicizing monetary policy, the continued resilience of the U.S. consumer, and emerging global tensions.

Transcript

[Adobe Marketing Representative]

Want to break free from the AI frenzy and truly transform your marketing. With Adobe, the path to ROI is clear and the opportunity is all around you. Let's turn AI's promise into your marketing reality. It starts with Adobe.

[Alex Osola]

JP Morgan's CEO defends the Fed, warning that interference would push up rates. Plus, inflation holds steady at 2.7% in December. And President Trump tells Iranian protesters that, quote, help is is on its way.

[Alex Ward]

We do know that officials are preparing just a lot of options for him. Whenever Trump is ready to make a decision, what he wants to do, things will move.

[Alex Osola]

It's Tuesday, January 13th. I'm Alex Osola for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that move the world today. On Wall street today, JPMorgan Chase CEO Jamie Dimon defended the Federal Reserve after it was subpoenaed by the Justice Department. Dimon told report that anything that, quote, chips away at the Fed's independence was a bad idea and could have consequences like increasing inflation and interest rates over time. Dimon's comments came after JP Morgan reported its earnings for the fourth quarter. The bank said its profit fell 7%, dragged down by a $2.2 billion charge from its deal to take over the Apple credit card program and a surprising slip in investment banking fees. But it still saw revenue increase for both the quarter and the year. I'm joined now by WSJ reporter Alexandra Saidi, who covers banking and finance. Alex, I want to start with Diamond's comments about Fed Chair Jerome Powell and the Fed central banks around the world. Former Fed and Treasury officials and several US Lawmakers have spoken out this week defending Powell or expressing concern about the investigation into him. How much does Dimon's comment reflect the broader feeling on Wall street in particular?

[Alexandra Saidi]

Yeah, it's very representative of, I think, the view among executives in banks, hedge funds, asset manager, that the independence of the Federal Reserve is a third rail, not something you want to interfere with. Because as we've seen in many countries around the world, when politics become a factor in how central bankers set monetary policy, you lose trust from investors. And that's exactly what has set America apart from a lot of other countries historically. And that's what the stewards of these large financial institutions want to insure remains. Without it, their ability to invest is curtailed. The appetite for investment goes down. So it's not surprising to hear Dimon come out swinging on this. And he was probably one of the first big Wall street executives to speak out since the news of the subpoenas went public over the weekend.

[Alex Osola]

Shifting now to focus on what J.P. morgan's earnings tell us about the consumer. On a call this morning, Dimon warned that there were big geopolitical risks. But overall he was upbeat about the state of the economy in the short run.

[Jamie Dimon]

Call it six months and nine months, even a year, you know, that's pretty positive. You know, consumers have money, there's still jobs, even though it's weakened a little bit. There's a huge, there is a lot of stimulus coming from one big beautiful bill.

[Alex Osola]

Alex, what do JP Morgan's numbers tell us?

[Alexandra Saidi]

JP Morgan's customer leans a little affluent. They're the biggest bank in the country, so they cover a lot of people. So there's a slight bias in what they report toward, towards your sort of upper middle class segment. But overall they were reporting really good credit metrics. 90 day plus delinquencies were down versus a year ago on credit cards. Spending is up 7% year over year on debit and credit cards. And the bank executives were saying consumers are spending. They seem confident. Most income groups in the country seem to be improving or at least having more confidence, which is a little different from the alternative economic narrative of the very wealthy are doing well while those in lower income segments are doing worse. According to the executives. It seems like in general the trajectory is good.

[Alex Osola]

That was WSJ reporter Alexander Saidi. Thanks, Alex.

[Alexandra Saidi]

Thank you.

[Alex Osola]

The latest government report on inflation shows that prices for goods and services rose 2.7% from a year ago in December. That's holding steady from a month earlier and in line with economists expectations, even with the turbulence from tariffs. WSJ economics correspondent Harriet Tory said these numbers probably don't do much to change the Fed's calculus.

[Harriet Tory]

So this is still above the Fed's target, which is 2% year over year. But it shows that inflation is not accelerating and in fact inflation is down from the beginning of last year. Right now, the December reading isn't likely to change the Fed's wait and see posture at its meeting in January because officials probably want to see more evidence that inflation is leveling off before it cut rates further. And then in 2026, tax cuts from the one big beautiful bill act are likely to put a bit more money in the pockets of consumers. So economists say that could be a driver for inflation. So the Fed probably wants to see some more evidence either that job market conditions are weakening or that price pressures are fading.

[Alex Osola]

Prices are still rising on a lot of things that are important to people. However, something that politicians have picked up on as they increasingly talk about affordability.

[Harriet Tory]

One thing we did see in this report that was somewhat worrying is that some key households line items saw some big price increases in December. So for instance, food went up by 0.7% from the prior month and that was the largest month over month increase since October 2022. And we also saw increases in things like rent, some transportation costs. Those are big items that people have to spend on every month and those price increases are a bit of a strain for consumers.

[Alex Osola]

You heard us mention JP Morgan's results earlier. Its fourth quarter profit slipped and while revenue grew, Wall street expected more. The Bank's shares dropped 4.2%, weighing on the Dow, which closed down 0.8%. The S& P and the Nasdaq also slipped. Delta Air Lines said today that it wants to sell more premium seats in first and business class. It's hoping that customers willing to pay more for their seats boost its profits this year. The airline posted stronger operating revenue for the latest quarter and says growth is accelerating, but an adjusted revenue figure for last quarter came in below analyst expectations. Shares fell more than 2% today, and Microsoft has promised to pay higher utility bills for all of its US Data centers that are powering AI models. It's a move that's intended to address local fears that AI is pushing up electricity prices. And Microsoft's plan drew praise from President Trump. Coming up, Trump rules out talks with Iran and the Journal's takeaway from the transgender sports cases that the Supreme Court heard today. That's after the break.

[Twilio Representative]

This podcast is brought to you by Twilio. You bring the vision Twilio brings the platform from real time messaging to AI powered insights. Twilio helps you build bold and personalized customer experiences. Twilio the ultimate toolbox for customer engagement. Learn [e-mail].

[Alex Osola]

President Trump has ruled out talks with Iranian officials and said Americans in Iran should evacuate the country. Speaking at the Detroit Economic Club this afternoon, President Trump encouraged Iranians to keep.

[Donald Trump]

Protesting and I've canceled all meetings with the Iranian officials until the senseless killing of protesters stops. And all I say to them is help is on its way. You saw that I put tariffs on anybody doing business with Iran. Just went into effect today and I say make Iran great again.

[Alex Osola]

An Iranian human rights group says more than 2,000 people have died in the unrest there. The Iranian government has shut down the Internet and says it'll crack down on demonstrations. For more on the growing tensions between the US And Iran, I'm joined Now by WSJ national security reporter Alex Ward. Alex, where do we stand in terms of Trump's plans for Iran?

[Alex Ward]

We're a bit at a standstill. I mean, he's been pretty open about wanting to do something and he's used pretty forceful language, including telling the Iranians, you know, if you start shooting at protesters, we'll shoot too. Signaling that Americans in Iran should probably get out of the country, which is usually a sign of things to come. We know that the President has been briefed by some senior officials on a suite of options available to him. Trump said no to the diplomatic options, in which case it leaves him with a range of, quote, unquote, non kinetic options. So that's cyber attacks, sanctions, basically anything that isn't military force and then also military force. We know that Tuesday morning Trump did not attend a meeting of senior officials, which he was expected to attend. We do know that officials are preparing just a lot of options for him. Whenever Trump is ready to make a decision, what he wants to do, things will move.

[Alex Osola]

We're also reporting that a number of Arab states in the Gulf, specifically Saudi Arabia, Oman and Qatar, are privately lobbying the White House to not strike Iran. Why don't they want that?

[Alex Ward]

They wouldn't want more instability in the region. If the US Were to attack Iran, and the Iranians would almost assuredly retaliate against American forces in the region, possibly Israel as well, that would likely incite an American or Israeli response and that could spiral out of control. And so if you're the Saudis, the Emirates, the Qataris, the last thing you want is war on in your region on your doorstep, and one that could completely get out of hand. But Trump likely feels emboldened if he were to pursue the military. Course, we don't know if he will for a couple of reasons. One is he's had a lot of military successes lately. The capture of Nicholas Maduro in Venezuela, strikes in Somalia and in Nigeria and in Yemen. So he's sort of feeling himself, let's say, and feeling the military option. Also more pertinent to the situation, Trump struck three of Iran's nuclear sites and was able to get a 12 day war between Israel and Iran to stop basically by sheer force of will. So he may feel he's able to contain a conflict, but that is always more of a guess than a guarantee.

[Alex Osola]

That was WSJ national security reporter Alex Ward. Thanks, Alex.

[Alex Ward]

Yeah, thanks for having me.

[Alex Osola]

And separately, the leader of Greenland said that if his people were asked to choose, they would remain a Danish territory. Rather than join the U.S. the foreign ministers of Denmark and Greenland are meeting a White House delegation led by Vice President J.D. vance tomorrow. Today, the U.S. supreme Court seemed inclined to uphold state laws banning transgender women and girls from competing in female sports events. The court heard more than three hours of arguments in cases challenging such laws in Idaho and West Virginia. Justices in the court's conservative majority were skeptical that the laws discriminate against transgender athletes, and Justice Brett Kavanaugh highlighted the lack of consensus among states.

[Supreme Court Justice Brett Kavanaugh]

I guess given that half the states are allowing it, allowing transgender girls and women to participate, about half are not. Why would we, at this point, just the role of this court, jump in and try to constitutionalize a rule for the whole country while there's still, as you say, uncertainty and debate, while there's still strong interest interests on other side.

[Alex Osola]

The justices are expected to rule by early July. And South Korean prosecutors have sought the death penalty for the country's former president, Yoon Suk Yeol, who briefly imposed martial law in December 2024. Yoon, who was charged with insurrection, has denied wrongdoing. A verdict is expected next month, but legal proceedings could stretch on for years. South Korea hasn't carried out any executions since 1997, and that's what's news for this Tuesday afternoon. Additional sound today courtesy of S and P Global Market Intelligence. Today's show is produced by Pierre Biennime, with supervising producer Talia Bell. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.

[BlackRock Representative]

Model portfolios are no longer one size fits all. In fact, 85% of investors want financial advisors to deliver models customized to their individual goals, investment preferences and tax circumstances. Discover some of the top themes driving the shift in seizing the next model moment by BlackRock.