JPMorgan Chase (JPM) CEO Jamie Dimon said he doesn’t think the Federal Reserve should begin lowering interest rates by June and should instead wait for more clarity.
“If I were them, I would wait,” Dimon said at the Australian Financial Review business summit via livestream in Sydney.
The suggestion from the boss of the nation’s largest bank comes as the central bank prepares to meet next week to decide on the direction of rates, which are currently at a 22-year high following an aggressive campaign to lower inflation.
Investors are currently betting that the Fed will hold steady in March and May before making its first cut in June, adjusting their expectations following cautious commentary from Fed Chair Jerome Powell and other Fed officials.
The Fed has two mandates: price stability, and low unemployment. Unemployment is low, and we’re above the Fed’s inflation target of 2%. Why cut rates now? Interest rates are currently around historic norms. There’s no upside to lowering rates now.
h/t boobsixty