JPMorgan's Dimon signals support for Kevin Warsh as Fed chair, FT reports

JPMorgan CEO Jamie Dimon signaled support for former Fed Governor Kevin Warsh as a possible next Federal Reserve chair while President Trump said he is leaning toward either Warsh or National Economic Council Director Kevin Hassett, the Financial Times reported; Reuters could not immediately verify the account and JPMorgan did not respond to requests for comment. Dimon told a private asset-management conference that Hassett is likelier to push for short-term rate cuts, a politically charged choice as Trump has criticized Chair Jerome Powell and said he should be consulted on Fed decisions; the Fed cut rates by 25 basis points on Wednesday, and the ultimate nomination could materially influence near-term monetary policy and market expectations.

Analysis

Reuters reported that JPMorgan CEO Jamie Dimon signaled support for former Fed Governor Kevin Warsh as a potential next Federal Reserve chair, while President Trump said he was leaning toward either Warsh or National Economic Council Director Kevin Hassett; Dimon also said Hassett is the candidate likelier to pursue short-term rate cuts. Dimon made the comments at a private asset-management CEOs conference in New York, the Financial Times reported, and Reuters could not immediately verify the account; JPMorgan did not respond to requests for comment.

The article notes the Fed cut rates by a quarter point on Wednesday, and a nomination of Hassett—whom Dimon characterized as more dovish in the near term—would likely shift market expectations toward easier policy and lower near-term yields relative to a Warsh appointment. Trump’s public criticism of Chair Jerome Powell and his comment that he should be consulted raise political risk around Fed independence and increase the sensitivity of markets to leadership news.

Signal data show mixed sentiment and a modest market-impact score (0.35) with marginally positive per-ticker sentiment for JPM (0.1), reflecting limited immediate market conviction and the risk that the report is unverified; therefore nomination developments remain the key catalyst and a source of short-term volatility for rate-sensitive assets.

Key Decisions for Investors

• Monitor confirmation of the Fed nominee closely and be prepared to increase duration exposure if market odds move toward Hassett (expectation of additional near-term cuts),
• Avoid trading materially on this Reuters/FT report alone given it is unverified and JPMorgan offered no comment; wait for official nomination or clear shifts in market-implied Fed paths before changing core positions
• Use tactical hedges (e.g., options or short-term Treasury positions) to protect against volatility in rates-sensitive sectors while the nomination process and political commentary unfold