JPMorgan Chase & Co. Chief Government Officer Jamie Dimon mentioned whether or not the Federal Reserve cuts rates of interest by 25 or 50 foundation factors, the transfer is “not going to be earth-shattering.”
“They need to do it,” Dimon mentioned at a convention on Tuesday. However “it’s a minor thing when the Fed’s raising rates and lowering rates because underneath that there’s a real economy.”
Fed officers are anticipated to decrease rates of interest this week for the primary time in additional than 4 years. Forward of the choice, bond merchants have been divided over whether or not the Fed will lower by a quarter-point or a half level because the central financial institution continues to pursue a gentle touchdown.
Dimon mentioned final month that he doesn’t “think it matters as much as other people think,” citing ongoing financial uncertainty and inflationary pressures. He’s been warning for greater than a yr that inflation could also be stickier than buyers anticipate, and wrote in his annual letter to shareholders in April that his agency is ready for rates of interest starting from 2% to eight% or extra.
On Tuesday on the Georgetown Psaros Heart for Monetary Markets and Coverage’s annual Monetary Markets High quality convention, he mentioned once more that geopolitical points — together with wars in Ukraine and the Center East in addition to the US’s relationship with China — are his high concern. It “dwarfs any one I’ve had since I’ve been working,” he mentioned.
“People overly focus on, ‘are we going to have a soft landing, a hard landing?’” Dimon mentioned. “Honestly, most of us have been through all that stuff, it doesn’t matter as much.”
