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Big Banks Start to Stock Pile Cash as Inflation and Interest Rates Set to Skyrocket!…

JP Morgan Chase CEO Jamie Dimon says that the Federal Reserve’s prediction that inflation will only be Transitory is misguided and that his bank is effectively stockpiling cash.

Dimon said that the cash in hand that the big bank is stockpiling is just in case high inflation causes the FED to raise interest rates. The CEO said he wants to make sure the establishment is set to benefit from the rising interest rates.

Dimon said, according to CNBC: “We have a lot of cash and capability, and we are going to be very patient because I think you have a very good chance inflation will be more than transitory,” he went on to say, “If you look at our balance sheet, we have $500 billion in cash, we’ve actually been effectively stockpiling more and more cash waiting for opportunities to invest at higher rates,” he finished off by saying “I do expect to see higher rates and more inflation, and we’re prepared for that.”

Consumer prices have risen 5% since Biden became President 5 months ago, the highest its been since the recession under Obama in 2008, and some experts believe that the economy is at risk as federal spending is out of control and the central bank’s monetary policy becomes easier.

CENTRAL BANK AND FED:                                                                                                                                                               The Fed wants to keep its current policy in place until there is a sustained 2% growth and max employment – The Unemployment rate in May was 5.8%, according to – Central bank believes that inflation will breach 2%, but they claim it will be temporary and would go down by next year as businesses and jobs bounce back from the pandemic. 

The Fed’s Federal Open Market Committee is holding a two-day meeting starting on Tuesday that will be closely watched, although it is not anticipated that the central bank will veer from its current policy trajectory.

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