JPMorgan

Jamie Dimon, CEO of JPMorgan, the largest U.S. bank, warned that the Federal Reserve could face serious obstacles in further cutting interest rates if inflation does not decline. At the same time, he dismissed concerns that stablecoins pose a threat to the traditional banking sector.

Inflation restrains the Fed
“If inflation doesn’t go away, it will be difficult for the Fed to continue cutting rates,” Dimon said in an interview with CNBC-TV18. According to him, inflation remains “stuck” around 3%, with several factors that could push it higher rather than lower. Still, he hopes the U.S. economy can maintain “decent growth” and that potential rate cuts won’t be forced by a recession.

Markets expect more cuts
Financial markets, however, are pricing in up to five rate cuts over the next 12 months. Last week, the Fed made its first cut of the year, lowering rates by 25 basis points, which immediately boosted Bitcoin’s price above $117,500.
According to CME FedWatch, investors expect further cuts this year – in October and December, each by 25 basis points. Fed projections suggest there could be two more cuts by the end of the year, with another possible in 2026.
The latest U.S. inflation data, published on September 11, showed a 0.4% increase in August, translating into a 2.9% annual rise, still above the Fed’s 2% target.

Stablecoins as a complement, not a threat
Dimon also addressed the rising role of stablecoins, which have become a political issue in the U.S. after Congress passed the first regulatory framework for these tokens in July.
“I’m not particularly worried about stablecoins,” Dimon said. In his view, there are countries where it is more practical for people to hold dollars via stablecoins outside the traditional banking system. However, he stressed that banks need to understand the issue and be ready to adapt.
JPMorgan is actively exploring stablecoins, and Dimon noted that the banking sector is even considering creating a consortium for a token of its own.

Banks’ concerns and future outlook
Meanwhile, banking associations have urged Congress to tighten rules, warning that loopholes allow stablecoin issuers and affiliates to pay interest or yields, which could compete with bank deposits and eventually undermine financial system stability.
Dimon, however, remains cautious: “I’m not sure central banks should be using stablecoins between themselves. Time will tell how this evolves.”

Dimon’s message is clear: while the Fed waits for inflation to ease, banks see stablecoins more as a supplement than a threat. Meanwhile, markets continue to bet that this year’s rate cuts are far from over.

#Fed , #Inflation , #JPMorgan , #interestrates , #FederalReserve

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Jamie Dimon, long known as a Bitcoin skeptic, has shifted his stance on crypto. He now sees stablecoins, especially dollar-pegged ones, as useful tools rather than a threat to banks. Dimon even suggested that JPMorgan could have a role in shaping their future.

However, he warned that with inflation still persistent, the Federal Reserve may struggle to deliver the rate cuts markets are anticipating.

Stablecoins are moving closer to mainstream adoption as big banks warm up. Regulatory frameworks are likely to tighten, offering both oversight and greater institutional trust. Macro pressures from inflation and Fed policy continue to define the risk environment.

Stablecoins are here to stay, but the pace of adoption may hinge on the Fed’s next moves.