Wednesday, April 24, 2024
English English French Spanish Italian Korean Japanese Russian Hindi Chinese (Simplified)

During the Australian Financial Review Business Summit in Sydney on March 12, Jamie Dimon, CEO of JPMorgan Chase & Co, highlighted the lingering risk of recession in the United States despite the current economic boom. Dimon emphasized the importance for the US Federal Reserve to maintain key lending rates until there’s greater clarity on economic indicators.

Dimon’s remarks come amidst the Fed’s sustained benchmark rates at 5.25-5.5% across four consecutive monetary policy meetings, with expectations of rate reductions in the future. He stressed the need for the Fed to closely observe economic indicators, particularly in the post-COVID-19 period, before considering rate cuts.

While advocating for a hold on rates presently, Dimon suggested the Fed could swiftly and significantly cut rates later if necessary, acknowledging the current low unemployment rates and rising wages in the US.

Despite recent optimism regarding the American economy, Dimon cautioned against dismissing the possibility of a recession, expressing a more cautious stance.

Regarding the timing of potential rate cuts, while the Fed kept rates steady in its latest policy review meeting on January 31, Fed Chair Jerome Powell hinted at impending rate cuts, particularly tied to inflation rates reaching the target of 2%. Powell emphasized the Fed’s readiness to adjust restrictions once sustainable inflation at 2% is assured, signaling potential rate reductions soon.

Subscribe

* indicates required

The Enterprise is an online business news portal that offers extensive reportage of corporate, economic, financial, market, and technology news from around the world. Visit to explore daily national, international & business news, track market movements, and read succinct coverage of significant events. The Enterprise is also your reach vehicle to connect with, and read about senior business executives.

Address: 150th Ct NE, Redmond, WA 98052-4166

©2024 The Enterprise – All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept