JPMorgan Chase Chief Executive Jamie Dimon thinks that the American Federal Reserve could actually increase the rates, in contrast to what is often thought.
Despite the consensus expectations of a rate reduction in the coming months, Dimon said on Thursday in a speech in Ireland that he thinks the market is underestimating the potential impact of inflation on Fed’s policy, Reuters reports.
“I think the possibility of those higher rates is (is) higher than anyone …
The market praises a 20%chance. I would praise a 40-50% chance. I would put that for concern. ‘
Dimon says that the rates of the US government, the immigration policy and the budget deficit can all have inflationary consequences.
Other votes in the financial sector have predicted the opposite for FED policy. Goldman Sachs Research Economists recently estimated that there is more than 50% chance of the FED recipient rates during the meeting of the Federal Open Market Committee (FOMC) in September, three months earlier than their previous predictions.
The Goldman economists predict 25-Bash-Punts cuts in September, October and December and March and June 2026.
The CME Fedwatch tool estimates that there is a 93.3% chance that the FED will maintain the target range for the federal fund percentage at 4.25-4.5% during the FOMC meeting in July. The tool, which generates probabilities with the help of the 30-day Fed Fundures Futures prices, estimates that there is a chance of 59.7% that the FED will lower the rate by 25 basic points during the FOMC meeting in September.
Fedwatch estimates a 0% chance of an interest rate increase this month or in September.
Follow us on X, Facebook and Telegram
Don’t miss a beat – Subscribe to get e -mail notifications directly to your inbox
Check price promotion
Surf the Daily Hodl -Mix
Generated image: midjourney