JPMorgan CEO Doubts Rapid Fed Policy Changes and Positively Assesses Stablecoins
Date: 2025-09-24 Author: Henry Casey Categories: BUSINESS
JPMorgan CEO Jamie Dimon stated that the Federal Reserve will not rush into further monetary policy easing as long as inflation remains above target. He noted that price growth of around 3% is unsustainable, and there are more factors on the horizon that could push it higher than lower.
The financier emphasized that rate cuts would only be justified in the context of sustained economic growth, not as an emergency response to a possible recession. He expressed hope that gradual policy easing would occur amid positive macroeconomic trends.
Meanwhile, the market is showing a different sentiment. On September 17, the Fed lowered its key rate by 0.25 percentage point for the first time since the end of 2024, setting a range of 4-4.25%. The decision was in line with analysts' forecasts, and market participants are expecting two more similar moves—at the end of October and the beginning of December. Moreover, the regulator's forecasts suggest further cuts as early as 2026.
Traditionally, a policy of cheaper borrowing stimulates demand for risky assets, including cryptocurrencies. The Fed's latest decision had a muted impact on Bitcoin's performance, but many altcoins managed to post significant gains. Meanwhile, US inflation accelerated by 0.4% in August, reaching 2.9% year-on-year, above the 2% target.
Dimon also addressed the issue of stablecoins, interest in which has increased significantly after Congress passed three cryptocurrency bills this summer. He believes that these assets do not pose a systemic threat to the banking sector, but they require close attention from market participants.
JPMorgan's CEO noted that stablecoins will be in demand across a wide range of sectors, from unscrupulous players to governments seeking to store dollar reserves outside the US banking system. He added that in some cases, users will prefer to hold digital dollars in such tokens rather than in traditional deposits.
Dimon also stated that JPMorgan is already working with this instrument, and the banks themselves are discussing the possibility of joining forces to issue their own stablecoin. He stated that central banks do not yet need such solutions for settlements, but that development in this area is inevitable.
JPMorgan analysts previously noted that competition between stablecoin issuers in the US will resemble a zero-sum game, where the growth of some inevitably means losses for others.
