JPMorgan CEO Warns of the Fed Raising Interest Rates to 7% With Stagflation

JPMorgan Chase CEO Jamie Dimon has expressed concerns astir the Federal Reserve perchance raising involvement rates to 7% and that the U.S. system could acquisition stagflation. “I americium not definite if the satellite is prepared for 7%,” helium stressed, adding that determination is “a scope of outcomes.”

Jamie Dimon’s Economic Warnings

The CEO of JPMorgan Chase, Jamie Dimon, discussed assorted aspects of the U.S. economy, including the interaction of further involvement complaint hikes, successful an interrogation with the Times of India, published Tuesday.

When asked astir the anticipation of a hard landing successful the U.S., the JPMorgan brag replied: “No 1 knows. There is simply a scope of outcomes. It volition beryllium affected by everything other — Ukraine, oil, gas, war, Europe.” The enforcement added: “I would beryllium cautious … We person to woody with each these superior issues implicit time, and the deficits can’t proceed forever. So rates whitethorn spell up more. But I anticipation and commune determination is simply a brushed landing.”

Dimon explained: “When rates spell up sharply, determination is accent successful indebtedness repayments.” While noting that the summation successful involvement rates from 0% to 5% took immoderate by surprise, helium emphasized that nary 1 would person considered 5% to beryllium “out of the realm of possibility.” In July, Fed officials raised the national funds complaint to a scope of 5.25% to 5.5%, the highest level successful 22 years.

However, the JPMorgan brag cautioned that involvement rates rising to 7% volition person a much terrible interaction connected the U.S. economy, stating:

I americium not definite if the satellite is prepared for 7% … The worst lawsuit is 7% with stagflation.

Earlier this month, Dimon warned of a recession, cautioning that it is “a immense mistake” to deliberation that the U.S. system volition roar for years.

The JPMorgan CEO besides commented connected whether cryptocurrency should beryllium banned. Noting that the Reserve Bank of India (RBI) wanting to outlaw cryptocurrency is the close move, helium opined: “You person to abstracted the satellite into crypto that does thing — foundations for astute contracts oregon information that tin beryllium moved easy truthful it creates worth somewhere. I deliberation that is taking spot a small bit.” Dimon added:

If it took the signifier of currency, which is expected to beryllium a store of value, that is simply a fraud; it should beryllium closed down.

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