4 Minutes
JPMorgan’s Jamie Dimon: Fed unlikely to cut until inflation eases
JPMorgan Chase CEO Jamie Dimon warned that the Federal Reserve may struggle to deliver additional interest-rate reductions unless inflation meaningfully cools. Speaking to CNBC-TV18, Dimon said inflation appears to be "stuck" around 3% and suggested there are credible arguments for it rising rather than falling. He emphasized he hopes for solid economic growth and any future rate cuts to come for the right reasons — growth rather than recession.
Market expectations vs. Fed realities
Dimon’s comments contrast with market sentiment that has priced in multiple Federal Reserve rate cuts over the next year. While investors have been optimistic — some forecasting several 25-basis-point cuts — Dimon’s view injects caution. Interest-rate policy is a major driver for crypto markets: easier monetary policy generally lowers borrowing costs and increases appetite for risk assets like Bitcoin and altcoins. Notably, a 25-basis-point cut earlier this year helped push Bitcoin above $117,500 for the first time in over a month.
Inflation data and timing of future cuts
Recent U.S. inflation figures showed a 0.4% monthly rise in August and a 12-month increase of 2.9% — still above the Fed’s 2% target. That data point complicates the Fed’s path and supports Dimon’s assessment that additional cuts may be hard to justify unless inflation moderates further. Market tools such as CME FedWatch currently indicate expectations for another 25-basis-point cut in late October and another in early December, but those probabilities may shift if inflation remains sticky.
Dimon’s view on stablecoins and banking
On the topic of stablecoins, Dimon said he is "not particularly worried" about the tokens posing an existential risk to banks, but he urged banks to stay informed and involved. He noted stablecoins can serve legitimate uses — from cross-border dollar access to digital dollar holdings outside the U.S. — and also be used by a range of actors, both reputable and problematic. Dimon reiterated that JPMorgan is engaged with stablecoin initiatives and that the banking industry is discussing potential consortium approaches to token issuance.
Regulatory backdrop and industry concerns
Congress passed legislation in July aimed at regulating stablecoins, but bank lobby groups have pushed for tighter rules. One concern is that certain stablecoin structures or their affiliates may be able to offer interest or yields that compete with traditional bank deposits, potentially drawing funds away from insured accounts and creating stability risks. Banks argue regulators should close these loopholes to prevent undercutting the conventional banking system.
What this means for crypto investors and institutions
For crypto traders and institutional investors, Dimon’s remarks underscore two key themes: macro policy remains a primary driver for crypto price action, and stablecoin regulation will continue to shape market infrastructure. If the Fed pauses or delays further cuts due to persistent inflation, risk assets could face headwinds. Conversely, clearer regulatory frameworks for stablecoins could both mitigate systemic risks and encourage broader institutional participation in digital-asset settlement and tokenized dollar instruments.
Banks, regulators and crypto firms will be watching inflation prints, Fed guidance, and legislative moves closely in the coming months. For the crypto sector, the interplay between monetary policy and stablecoin regulation will be decisive for market liquidity, institutional adoption, and long-term stability.
Source: cointelegraph
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