© Reuters. FILE PHOTO: The Federal Reserve Building stands in Washington April 3, 2012. REUTERS/Joshua Roberts/File Photo
SYDNEY (Reuters) -JPMorgan Chase CEO Jamie Dimon on Tuesday urged the Federal Reserve to wait past June before cutting interest rates, arguing the central bank needs to shore up its inflation-fighting credibility.
“I think they have to be data-dependent. If I were them, I would wait,” Dimon said at the Australian Financial Review business summit via a livestream from New York.
“You can always cut it quickly and dramatically. Their credibility is a little bit at stake here. I would even wait past June and let it all sort it out.”
Markets are seeing an 84% probability the Fed will cut in June, while a total easing of 90 basis points have been priced in for the year.
Dimon said the U.S. economy was doing so well it could almost be characterised as a boom, but cautioned against the wholesale embrace of the soft landing narrative by markets. He put the odds of a recession of some sort at around 65% and refused to rule out the possibility of stagflation.
He has previously warned that geopolitical tensions, including the war in Ukraine and conflict in Gaza, could weigh on global growth.
Dimon said the surge in debt and equity markets since late 2023 had some bubble-like characteristics and said the legacy of the massive fiscal and monetary stimulus from the pandemic was still coursing through markets.
“I’m not sure the world is that safe a risk free place,” he said.
