Ahead of the Fed meeting, Jamie Dimon weighs in on rate cuts

“They should do it,” Dimon stated at a convention on Tuesday. However “it’s a minor factor when the Fed’s elevating charges and reducing charges as a result of beneath that there’s an actual economic system.” 

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 mushy touchdown. 

Dimon stated final month that he doesn’t “suppose it issues as a lot as different folks suppose,” 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 Middle for Monetary Markets and Coverage’s annual Monetary Markets High quality convention, he stated 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 prime concern. It “dwarfs anybody I’ve had since I’ve been working,” he stated. 

“Folks overly give attention to, ‘are we going to have a mushy touchdown, a tough touchdown?’” Dimon stated. “Actually, most of us have been by way of all that stuff, it doesn’t matter as a lot.”