JPMorgan CEO Dimon Signals Rate Cuts Not guaranteed, Cautions Bitcoin Market
NEW YORK – JPMorgan Chase CEO Jamie Dimon indicated Monday that the Federal Reserve is unlikely to lower interest rates until inflation demonstrates a sustained decline, potentially dampening hopes for a boost to risk assets like Bitcoin. Dimon’s comments, made to CNBC-TV18, suggest the market’s anticipation of meaningful monetary stimulus might potentially be premature.
“If inflation does not disappear, it will be difficult for the Fed to lower further,” Dimon stated. He further expressed concern that inflation ”seems to be a bit stuck at 3%,” and even posited a scenario where it increases before falling. However, he voiced a preference for interest rate reductions coupled with ”reasonable growth,” rather than cuts necessitated by a recession.
Dimon’s assessment tempers expectations of multiple rate cuts, with some investors predicting as many as five reductions over the next twelve months.Lower interest rates typically benefit cryptocurrency markets by encouraging investment in riskier assets. A recent 25 basis point rate reduction on Wednesday pushed Bitcoin (BTC) to a high of $117,500, its highest level in over a month.
Current market expectations, according to CME Fedwatch data, point to potential 25 basis point cuts at the Fed’s October and December meetings. The Federal Reserve’s own projections, released September 17, suggest two further cuts before year-end, with potential reductions continuing into 2026.
however, recent inflation data released september 11 shows inflation rose 0.4% in August, bringing the year-over-year increase to 2.9% – exceeding the Fed’s 2% target.
Dimon Addresses Stablecoins, Banking Concerns
Dimon also addressed the growing importance of stablecoins, a topic of increasing regulatory scrutiny following legislation passed by Congress in July.He stated he is “not especially worried about” stablecoins, but emphasized the need for banks and industry participants to remain vigilant.
“There will be people who want to keep dollars outside the US via a Stablecoin, from crooks to good citizens and in certain countries where you probably can have dollars better than putting them in the local banking system,” Dimon explained.
JPMorgan is actively involved in the stablecoin space and is exploring the possibility of a banking consortium launching its own token. dimon acknowledged the potential for central bank involvement in the future, stating, “I don’t know if central banks have to use it among themselves, so it will develop over time.”
Banking industry leaders have urged Congress to strengthen stablecoin regulation, citing concerns that interest-bearing stablecoins could undermine traditional bank deposits and destabilize the banking system.
