JPMorgan’s Dimon urges Federal Reserve to wait past June before cutting rates

JPMORGAN Chase CEO Jamie Dimon on Tuesday urged the Federal Reserve to attend previous June earlier than slicing rates of interest, arguing the central financial institution must shore up its inflation-fighting credibility.

“I think they have to be data-dependent. If I were them, I would wait,” Dimon mentioned on the Australian Financial Review enterprise summit by way of a livestream from New York.

“You can always cut it quickly and dramatically. Their credibility is a little bit at stake here. I would even wait past June and let it all sort it out.”

Markets are seeing an 84 per cent likelihood the Fed will minimize in June, whereas a complete easing of 90 foundation factors have been priced in for the yr.

Dimon mentioned the US economic system was doing so effectively it may nearly be characterised as a increase, however cautioned towards the wholesale embrace of the smooth touchdown narrative by markets. He put the chances of a recession of some kind at round 65 per cent and refused to rule out the potential of stagflation.

He has beforehand warned that geopolitical tensions, together with the struggle in Ukraine and battle in Gaza, may weigh on international development.

Dimon mentioned the surge in debt and fairness markets since late 2023 had some bubble-like traits and mentioned the legacy of the large fiscal and financial stimulus from the pandemic was nonetheless coursing by way of markets.

“I’m not sure the world is that safe a risk-free place,” he mentioned. REUTERS