JPMorgan CEO Jamie Dimon Makes Statement on FED and Cryptocurrency

JPMorgan CEO Jamie Dimon, who has been hostile towards Bitcoin (BTC) and cryptocurrencies for years, has recently softened his stance.

Jamie Dimon, who made moderate statements about Bitcoin and cryptocurrencies, lastly spoke about stablecoins and FED interest rate cuts.

Speaking to CNBC, JPMorgan Chase CEO Jamie Dimon said that stablecoins are not a threat to bank deposits.

Dimon stated that he is not worried about stablecoins, but that the banking sector is not ready for it yet and needs to understand stablecoin technology and prepare for commercialization.

Dimon noted that there is strong demand abroad for holding US dollars in stablecoin form, adding that JPMorgan is also involved in stablecoin-related activities and is considering establishing a consortium.

The JPMorgan CEO also touched on the issue of Fed interest rate cuts. Dimon stated that the Fed would have difficulty lowering interest rates.

Dimon added that the Fed is unlikely to cut interest rates further, noting that high inflation remains a concern.

“If inflation doesn’t fall, it will be difficult for the Fed to cut interest rates further.

“Inflation seems to be stuck at 3%. At this point, I think inflation will trend upwards, not downwards.”

According to CME FedWatch, which is based on futures trader expectations, the probability of a 25 basis point rate cut at the October and December meetings is priced in at about 90% and 75%, respectively.

*This is not investment advice.