Crypto NewsBitcoinUnexpected Interest Statement from Bitcoin Enemy JP Morgan CEO!

Unexpected Interest Statement from Bitcoin Enemy JP Morgan CEO!

JP Morgan CEO said the FED may raise interest rates to 7% with stagflation and the world may not be prepared for the worst-case scenario.

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The US central bank, the FED, raised interest rates to 5.5% to cope with high inflation.

The FED, which left the interest rate constant in its last decision, stated that it would proceed depending on the data regarding the interest rate increase.

The expectation of the markets was that the FED would keep the interest rates constant at 5.5% for a while and then reduce them.

However, an unexpected interest rate statement came from JP Morgan CEO Jamie Dimon.

Because the famous CEO's statements contradict the majority opinion that the FED is approaching the end of its tightening cycle after the increase that raised the interest rate to 5.5%, the highest level in 22 years.

While US policy makers signal that interest rates must remain high for a longer time to control inflation, markets expect and price a reduction in interest rates starting from 2024.

According to Bloomberg, Jamie Dimon said that interest rates in the USA could reach 7%.

Speaking to Times of India, JP Morgan CEO said that the FED may increase interest rates to 7% with stagflation and that the world may not be prepared for the worst-case scenario.

“Interest rates may need to increase further to combat inflation. At this point, increasing interest rates from 5% to 7% will be more painful for the economy than increasing interest rates from 3% to 5%.

The interest rate increase from zero to 2% was barely an increase at all.

The fact that it went from zero to 5% caught some people off guard, but no one is betting much higher than 5%.

So I'm not sure if the world is ready for 7 percent.”

Negatively affected by the FED's interest rate increases, Bitcoin reached its peak of $69,000 in November 2021, when the FED started increasing interest rates.

Since the subsequent bear market is directly related to the FED's interest rate increases, it is thought that a policy change here may end the bear market and BTC may return to its old days.

*This is not investment advice.



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