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JPMorgan is hoarding cash – CEO claims ‘very good chance inflation will be more than transient’ – Economics Bitcoin News


According to the company’s CEO, Jamie Dimon, investment bank JPMorgan Chase is depositing the cash. Investment bankers do not seem to see inflation as “temporary” and think there is a “very good chance” that inflation may persist.

JPMorgan Chase CEO: ‘I expect to see higher rates and more inflation’

Bitcoin.com news at the end of April Reported on the Federal Open Market Committee (FOMC) and explained how FOMC members said the benchmark interest rate would be kept close to zero. In addition, FOMC members also stated that the committee was not too concerned about inflation, but acknowledged that inflation may have a “transient effect” on the US economy.

The bosses of JPMorgan Chase, according to their recent statements, do not believe this to be the case. He told the public People warned about cryptocurrencies At the end of May, Dimon recently runaway inflation alert, with inflation predictions by Larry Summers.

During a conference on Monday, Dimon reiterated its inflation forecast and noted that his financial institution was “effectively stockpiling” the cash. The reason JPMorgan Chase hoarding cash is because Dimon thinks inflation won’t be temporary.

“We have a lot of cash and capacity and we’re going to be very patient, because I think you have a very good chance that inflation will be more than transient,” Dimon explained at the conference. Dimon further said that JPMorgan Chase will remain prepared for coming inflation levels and higher rates.

“If you look at our balance sheet, we have $500 billion in cash, we’re really effectively stockpiling more and more cash waiting for opportunities to invest at higher rates,” Dimon emphasized. . “I expect to see higher rates and more inflation, and we are prepared for that.”

Macro analyst Sven Heinrich: ‘Fed has reduced wealth inequality to unreasonable levels’

Dimon isn’t the only investment mogul who believes inflation could slow the U.S. economy, as many others have warned about the Federal Reserve. monetary easing policy. founder of Northmantrader.com Sven Heinrich continues to criticize the behavior of the US central bank.

“The Fed has skewed wealth inequality to unreasonable levels when creating [the] The cost of living continues to rise for many people, and in the process has blown up a historic asset bubble that, if and when it blows, will hurt everyone,” Heinrich said on Tuesday. Heinrich added to his scathing criticism: saying:

Institutional arrogance is temperamental and there doesn’t appear to be anyone on that Fed board who has any backbone and sense of responsibility to stand up and say: That’s it.

On Monday, the founder of asset management firm Tudor Investment Corp., Paul Tudor Jones, also signaled disapproval for the Federal Reserve’s lack of inflationary concerns. Jones essentially noted that the US central bank credibility is at stake If inflation is not temporary as FOMC members predict. millionaire Stanley Druckenmiller told CNBC Last week That investors will ignore inflation “until the Fed stops canceling market signals.”

In another talk during the broadcast closing bell, Morgan Stanley CEO James Gorman Told CNBC’s Wilfred Frost said he doesn’t believe inflation will be fleeting and that the Federal Reserve’s hands may be forced to raise interest rates.

“The question is, when does the Fed run?” Gorman commented. “It has to move forward at some point, and I think the bias is likely to be greater at current points than it is before,” said Morgan Stanley’s CEO.

Peter Schiff thinks it’s strange that finance companies are stocking greenbacks instead of gold

The Gold Bug and the Economist Peter Schiff think However, the US population seems to be “even more convinced now that inflation is transient, before we can have all this really bad data.” Rather than hoarding the greenback, as JPMorgan Chase boss Jamie Dimon is doing, Schiff elaborated that he would assume the dollar would be lost in an attempt to avoid falling values.

“The reality is, when you have inflation, what really should happen is investors are selling dollars because they’re losing value,” Schiff said Tuesday on his podcast. “They should sell bonds even faster because they represent the dollar in the future, which will be worth less than the dollar at present. And you should buy gold as a hedge against that inflation.”

Schiff insisted that the opposite is happening right now, and added that he honestly doesn’t understand why businesses are stockpiling the greenback. Of course, The Economist also dropped his favorite bright yellow item on the podcast, saying smart people would buy gold as a hedge against this financial disaster.

“In the long run, anyone who really understands the importance of what is going on will take advantage of these market moves to sell the dollar on the rally and buy gold in the downside because the big moves are clearly going down in the dollar,” said the US. A drop in Treasuries, which represents a future payment of the dollar, and a major move in gold,” Schiff concluded.

What do you think about Jamie Dimon’s statements about inflation and JPMorgan Chase’s cash reserves? Let us know what you think about this topic in the comment section below.

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