Asia FX cautious amid US govt shutdown; yen tumbles after Takaichi’s LDP win
Investing.com -- JP Morgan CEO Jamie Dimon stated that the Federal Reserve may find it difficult to cut interest rates if inflation persists, during an interview with CNBC-TV18 on Tuesday.
"If inflation does not go away," it would create challenges for the Fed’s ability to reduce rates, Dimon explained.
The banking executive suggested that market participants may be overly concerned with minor rate adjustments, noting that "People focus too much on 25 basis points."
Looking ahead to potential leadership changes at the central bank, Dimon expressed his desire for appropriate selection of the next Federal Reserve chairperson, saying "hopefully we’ll pick a good Fed chair."
Commenting on the current administration’s economic approach, Dimon acknowledged that "The Trump administration is more pro-growth, but we haven’t really attacked the fiscal deficit problem yet."
While he recognized that economic expansion could help address some fiscal challenges, he remained cautious about its overall impact, adding "Growth will do some of that, but I don’t know if it will do all of it."
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