Investment bank JPMorgan Chase is stockpiling cash according to the company’s CEO Jamie Dimon. The investment banker doesn’t seem to believe inflation is “transitory” and he thinks there’s a “very good chance” inflation could stick around.
JPMorgan Chase CEO: ‘I Do Expect to See Higher Rates and More Inflation’
At the end of April, Bitcoin.com News reported on the Federal Open Market Committee (FOMC) and explained how FOMC members said the benchmark interest rate will be kept near zero. Moreover, members of the FOMC also said the committee wasn’t too concerned about inflation, but admitted inflation may have “transitory effects” on the American economy.
JPMorgan Chase’s boss doesn’t believe this is the case, according to his recent statements. While telling the public he warned people about cryptocurrencies at the end of May, Dimon recently warned of runaway inflation, alongside Larry Summers’ inflation predictions.
On Monday during a conference, Dimon reiterated his inflation forecast and noted that his financial institution was “effectively stockpiling” cash. The reason JPMorgan Chase is hoarding cash is because Dimon thinks inflation won’t be temporary.
“We have a lot of cash and capability and we’re going to be very patient, because I think you have a very good chance inflation will be more than transitory,” Dimon explained at the conference. Dimon further asserted that JPMorgan Chase would be prepared for incoming inflation levels and higher rates.
“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,” Dimon stressed. “I do expect to see higher rates and more inflation, and we’re prepared for that.”
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