Jamie Dimon Praises Fed Chair Candidate Kevin Warsh at Closed-Door Event

JPMorgan Chase CEO Jamie Dimon has cultivated a reputation as a de facto spokesman for the banking industry’s interests. (Samuel Corum/Bloomberg)

JPMorgan Chase CEO Jamie Dimon, the nation’s top banker, has some thoughts on the next Federal Reserve chair.

At his bank’s private, annual asset-management industry event held this week, Dimon was asked about Kevin Hassett, a top White House economic adviser who is seen as the likeliest successor to Fed Chair Jerome Powell, and Kevin Warsh, a former Fed governor who President Donald Trump considered for chair during his first term.

Hassett would likely move quickly to lower short-term interest rates, in line with what Trump has said he wants from the Fed, Dimon said, according to people familiar with his remarks.

But because the market would see Hassett as overly close with Trump, it may not respond by lowering long-term rates alongside Fed rate cuts, Dimon said.

The Fed controls short-term interest rates, but long-term rates such as the 10-year Treasury are set by the markets. The 10-year yield has risen from 4.0 to 4.2% since Bloomberg reported in late November that Hassett was the frontrunner.

“Kevin Warsh would make a great chairman,” Dimon said.

Dimon said at the event that his firm would be fine under either man.

The Wall Street Journal reported Friday that Trump is leaning toward either Warsh or Hassett as his choice.

“Any discussion about Fed nominations until an announcement is made by President Trump is pointless speculation,” a White House official said.

Trump has been eager to replace Powell, whom the president blames for keeping interest rates too high. Treasury Secretary Scott Bessent is leading a search for the new chair. He has developed a shortlist of five candidates, including both Hassett and Warsh.

As the longtime chief of the largest U.S. lender, Dimon has cultivated a reputation as a de facto spokesman for the banking industry’s interests.

He is well-known for speaking candidly in ways that CEOs with less gravitas wouldn’t. Dimon has previously spoken out about the Fed’s independence as Trump seeks a replacement for Powell.

“I think the independence of the Fed is absolutely critical,” Dimon told reporters in July. “Playing around with the Fed can have adverse consequences, the absolute opposite of what you might be hoping for.”

Write to Matt Peterson at matt.peterson@dowjones.com and Rebecca Ungarino at rebecca.ungarino@barrons.com