Trump: 'Bessent an option for Fed leadership'. And Dimon defends Powell

US Treasury Secretary Scott Bessent is an option for the Fed chairmanship: 'I like the job he is doing,' Donald Trump said, according to Bloomberg news agency. For months Trump has been saying he wants to replace Jerome Powell whom he has also publicly called 'stupid' for not lowering interest rates and whom he has repeatedly asked to step down.

Trump had nominated Powell during his first term, and Democratic President Joe Biden reappointed him for a second term as Fed chief.

With unemployment low and inflation above the Fed's 2 per cent target, US central bank officials have been reluctant to cut interest rates until it is clear that Trump's tariff policies will not lead to a new surge in prices. US data on Tuesday showed that consumer prices rose for a wide range of goods, from coffee to audio equipment to furniture, which economists say shows that higher import tariffs are being passed on to consumers.

Into the Powell-Trump feud comes JPMorgan Chase CEO Jamie Dimon, who was critical in Trump's first term, but became much more conciliatory in the US president's second term. Dimon harshly criticised Trump's attitude towards Jerome Powell.

"Playing games with the Fed can often have negative consequences, the exact opposite of what one might hope for," Dimon told reporters after the release of his bank's quarterly results.