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JPMorgan’s Dimon Warns Inflation Could Delay Fed Cuts—Downplays Stablecoin Threat

JPMorgan’s JAMIE Dimon

Jamie Dimon, the CEO of JPMorgan Chase, has added a note of caution to talks about the direction of the Federal Reserve’s monetary policy. Dimon said in a that inflation may stay high for longer than expected, which means that the central bank would have to keep interest rates stable for longer.

He said that it would be hard to lower rates further if inflation stayed around 3%. Dimon said, “If inflation doesn’t go away, it will be hard for the Fed to cut more.” This shows that he thinks the current level feels “a little bit stuck.”

This point of view is very diverse from what most people in the market think, which is that rapid easing is already priced in. Investors are hoping for up to five quarter-point cuts in the next year, thanks to the Fed’s recent 25-basis-point cut, which was the first in 2025 and pushed BTC above $117,500 for the first time in almost a month. The CME FedWatch and other tools show that people predict more cuts in late October and ahead December. 

The own projections say there will be two more cuts before the end of the year and one in 2026. Dimon, on the other hand, tries to calm this excitement by noting that there are underlying pressures that could make prices go up instead of down.

He said, “Again, I can give you some reasons why it’s going to go up, not down,” and pointed to things like difficultys with the supply chain, conflicts between countries, and rising wages that might begin inflationary spirals again. Dimon’s comments came as new U.S. data showed that consumer prices rose by 0.4% in August, which is a 2.9% annual gain that is still above the Fed’s 2% target.

This unpredictability makes it harder for him to make predictions for the large bank he runs. Higher-for-longer rates could make it more expensive for people and businesses to borrow money, which could sluggish the growth of loans and profits at

However, Dimon is still hopeful about the economy as a whole. He hopes for “decent growth” that might let the Fed drop rates without sending the nation into a recession. This balanced view fits with his long-standing reputation as a voice of reason in the financial world, where he often puts resilience ahead of excitement.

Unfazed by Stablecoins: A Pragmatic Embrace

When it came to cryptocurrencies, Dimon downplayed worries about stablecoins, which are digital assets that are linked to the dollar and have become more critical since Congress approved new regulations. He said, “I’m not really worried about them,” and instead stressed how significant it is for banks to stay aware and take action.

are meant to keep their value at $1, and they have been popular for cross-border payments and as a way to protect against volatility. However, they have also come under fire for the threats they pose to traditional banking.

Dimon said that people would want to possess dollars through a stablecoin outside the , from evil men to excellent guys to those nations where it’s probably preferable to have dollars and not put them in the banking system.

This reference to real-world use, from sanctioned groups getting around controls to developing countries looking for dollar stability, shows how stablecoins may be both excellent and poor. He asked if they were necessary for central banks to pay debts between banks, saying, “I’m not sure central banks need to use it among themselves so that it will develop over time.”

JPMorgan itself is not just a bystander in this area, which is interesting. The company has been a leader in trying out blockchain technologies, even creating its own JPM Coin for institutional clients. Dimon said that the industry is “looking at whether they should have a consortium” to launch a shared token.

This shows that they are moving away from outright rejection and toward integration. This comes as industry organizations push for stronger rules, saying that present loopholes, such as issuers giving yields, might take deposits away from banks and threaten the stability of the whole system.

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