JPMorgan Chase CEO Jamie Dimon Advises the US Fed to Wait Past June Before Cutting Rates

By Jace Dela Cruz

Mar 12 2024, 02:38 AM EDT

JPMorgan Chase CEO Jamie Dimon is urging the US Federal Reserve to exercise patience and refrain from cutting interest rates until after June, emphasizing the importance of maintaining credibility in inflation management.

JPMorgan Chase CEO Jamie Dimon Advises the Fed to Refrain Cutting Rates Until After June

According to Reuters, expressing his views during the Australian Financial Review business summit via livestream from New York on Tuesday, Jamie Dimon stressed the need for the Fed to base its decisions on data.

He suggested delaying rate cuts to allow for a clearer assessment of the economic landscape, asserting that quick and drastic cuts could jeopardize the central bank's credibility.

Despite market expectations of rate cuts in June, Dimon highlighted the robust performance of the US economy, describing it as nearing a state of boom. However, he cautioned against embracing the narrative of a soft landing entirely, acknowledging the possibility of a recession and even stagflation.

Dimon also commented on the surge in debt and equity markets since late 2023, noting certain bubble-like characteristics. He attributed this phenomenon partially to the lingering effects of pandemic-related fiscal and monetary stimulus measures.

JPMorgan Chase CEO Jamie Dimon on AI and the US Elections

On artificial intelligence (AI), Jamie Dimon disclosed that JPMorgan Chase has dedicated significant resources to AI development, with thousands of employees working on various applications within the bank.

He also mentioned his personal use of AI to summarize books due to time constraints. Looking ahead to the upcoming US presidential election, Dimon characterized it as a "circus," expressing uncertainty about the outcome.

He voiced hopes for a more measured approach to foreign policy rhetoric from presidential candidates, particularly former President Donald Trump.

"The whole thing is going to be nervewracking... I hope Trump is a much more thoughtful, rational speaker when he talks about foreign policy and how he wants to handle that," Dimon said, as Reuters reported.