JPMorgan CEO Jamie Dimon remarked that the Fed is unlikely to lower the key rate without a significant slowdown in inflation. He also spoke positively about stablecoins.
“If inflation does not disappear, it will be difficult for the Fed to lower rates further,” shared the thoughts of the top manager of the largest US bank.
According to him, inflation is “stuck” at around 3%. Dimon added that he sees more factors for the indicator to rise rather than fall.
Nevertheless, the expert expressed hope for sustained economic growth and a softening of monetary policy—not as a forced measure by the regulator in a recession, but as a natural step amid positive dynamics.
The Market Disagrees
On September 17, the Fed lowered the key rate by 0.25% to 4-4.25% for the first time since December 2024. The outcome of the meeting matched investors’ expectations.
Market participants predict two more 25 basis point rate cuts—at the end of October and early December.
The “cheap money” policy often supports cryptocurrencies—accessible credit increases investors’ willingness to take risks. Bitcoin reacted rather cautiously to the latest rate change, but many altcoins showed significant growth.
Fed forecasts suggest two rate cuts in the coming months and another in 2026.
Inflation in the US rose by 0.4% in August and reached 2.9% year-on-year, thus exceeding the target level of 2%.
Stablecoins Pose No Threat
Dimon specifically addressed the topic of “stablecoins,” whose relevance has significantly increased after Congress approved three cryptocurrency bills in July.
According to the head of JPMorgan, financial institutions have no reason for serious concerns. However, he emphasized that banks and other market participants should closely monitor the development of these assets and “understand their features.”
“There will be people who want to hold dollars through stablecoins outside the US—from bad guys to good guys and to individual countries. It is probably better to keep dollars there than to place them in the banking system,” he said.
The financier stressed that JPMorgan works with “stablecoins,” and banks are discussing the possibility of creating a consortium to issue their own token.
“I am not sure that central banks need to use this [for settlements] among themselves. However, over time it will develop,” concluded Dimon.
Earlier, JPMorgan experts described the anticipated “stablecoin race” in the US as a zero-sum game.