The head of JPMorgan Chase predicts a pause in Fed rate hikes but warns of more quantitative tightening

The Executive Chairman CEO of JPMorgan Chase, Jamie Dimon, is said to have anticipated a slowdown in Federal Reserve rate rises in a piece published by The Daily Hodl earlier today.

The Daily Hodl reports that during an interview with Bloomberg on May 31, 2023, Dimon said a halt to rate rises is warranted. According to reports, he also hinted that the Fed could need to start raising interest rates again after this hiatus if it wants to keep inflation under control, which he thinks will be more long-lasting than previously predicted.

According to reports, Dimon said that the rise in basis points has been significant and that a halt is necessary now. But he also warned that rates would rise further if inflation proved more stubborn than expected.

The CEO of JPMorgan Chase has sounded an alarm about the market volatility that may result from quantitative tightening. According to The Daily Hodl’s reporting, Dimon said that after more than 15 years of quantitative easing, we would soon witness quantitative tightening, the impacts of which may be more severe than many anticipate.

According to Dimon’s letter to shareholders published in JPMorgan Chase & Co.’s 2022 Annual Report on April 3, 2023, the bank is ready for higher interest rates and longer-lasting inflation. According to reports, he implied that all assets, including crypto and “meme stocks,” are likely to feel the effects of the rapid increase in the money supply and the more than a decade of quantitative easing.

According to reports, Dimon said that the unprecedented liquidity from quantitative easing was a significant factor in the price increases across various asset classes. He also mentioned the rise of $13 trillion to $18 trillion in bank deposits.

Dimon reportedly said that the Fed is shifting from quantitative easing to quantitative tightening in response to inflation, as reported by The Daily Hodl. The impacts of this change may be more severe than people anticipate, but he expressed optimism that we will be well after that.

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