JPMorgan CEO Dimon Says Inflation May Block Fed Rate Cuts, Stablecoins No Bank Threat

JPMorgan CEO Jamie Dimon expressed skepticism about the Federal Reserve's ability to cut interest rates further unless inflation, currently around 3%, declines closer to the Fed's 2% target. He emphasized that persistent inflation and other global economic pressures could make additional rate cuts difficult, contrasting with market expectations for up to two or more cuts this year and into 2026. Dimon also downplayed concerns that stablecoins pose a threat to traditional banking deposits, highlighting the need for banks to understand and engage with the evolving digital asset space. He noted stablecoins' utility in providing digital access to U.S. dollars internationally and indicated JPMorgan's proactive involvement, including potential consortium formation, to integrate these assets within regulated frameworks. The Fed's recent rate cut has already buoyed crypto markets, with Bitcoin prices rising following the September reduction. Overall, Dimon's views align with cautious Fed officials who doubt the feasibility of further monetary easing amid sustained inflationary pressures.