TIP - Jamie Dimon Warns Of Potential 6.25% Rate Hike From Fed Amid Sticky Inflation: Quantitative Tightening 'Will Rattle The Markets' | Benzinga
JPMorgan Chase & Co (NYSE:JPM) CEO Jamie Dimon has commented on the latest Federal Reserve move and the impact of rate hikes and quantitative tightening on the economy.
More Rate Hikes Warranted: The Fed did the right thing to raise rates rapidly and now they should pause and see what happens, Dimon said in an interview with Yahoo Finance late Wednesday.
On Wednesday, the Federal Open Market Committee, the monetary-policy setting arm of the Fed, opted to maintain the fed funds rate unchanged at a 22-year high of 5.25%-5.50% for a second straight meeting. The post-meeting policy statement was little changed, with the central bank commenting about financial and credit conditions likely weighing on overall economic activity for households and businesses.
Fed Chair Jerome Powell's presser suggests future rate moves will be decided on a case-by-case basis, with a bias toward tightening.
Speaking with Yahoo Finance, Dimon said, "I think there is a chance that inflation is stickier than people think. He noted that the fiscal and monetary stimulus of the last several years is more than people think and the unemployment rate is very low.
The executive said there is a higher chance of rates going up 25, 50, or 75 basis points more. The 10-year rates, which are not set by the Fed, have gone up ...