Interest rate cut warning from JPMorgan CEO: May not be expected
According to JPMorgan CEO Jamie Dimon, interest rates may remain at a higher level longer than the market expects due to inflationary obstacles.
JPMorgan CEO Jamie Dimon warned about inflation despite the decline in the latest data and said interest rates could remain higher than the market expected.
'There are many inflationary obstacles'
“Some progress has been made in reducing inflation, but we still have a lot of inflationary obstacles ahead of us: large financial deficits, infrastructure needs, trade restructuring and increased military spending again in the world,” Dimon said in a statement after the bank's second-quarter results. For this reason, inflation and interest rates may be higher than the market expects.” said.
U.S. inflation figures released on Thursday showed annual inflation dropped to 3 percent. Thus, inflation decreased to the lowest level in 3 years.
Fed chairman Jerome Powell, on the other hand, delivered positive messages during the sessions of the Senate and House of Representatives committees. Powell emphasized that keeping interest rates at a high level for too long could jeopardize economic growth, implying that reductions are on the horizon as long as progress is made in inflation.
Powell said, “Inflation is the face to reduce interest rates.It is not necessary to wait for it to go down to 2," he said. #PowellSpeech #JPMorganBitcoin
