J.P. Morgan Chase CEO Jamie Dimon instructed CNBC on Wednesday that destructive rates of interest are one of many solely issues that concern him in
J.P. Morgan Chase CEO Jamie Dimon instructed CNBC on Wednesday that destructive rates of interest are one of many solely issues that concern him in a market that is in any other case in a “Goldilocks place.”
“The one factor I’ve trepidation about is destructive rates of interest, QE, and the diversion between inventory costs and bond costs and yield and stuff like that,” Dimon stated on “Squawk Box” from the World Financial Discussion board in Davos, Switerzland.
“It is type of one of many nice experiments of all time, and we nonetheless do not know what the final word final result is,” Dimon stated.
Unfavourable rates of interest have been utilized by central banks in Japan and Europe to attempt to stimulate their stubbornly stagnant economies. Economists are divided over their effectiveness to reignite financial development, and a few worry destructive charges can hold development subdued relatively than carry it. They’ve been used at the side of quantitative easing, within the U.S. and overseas, the place central banks buy property like Treasury payments.
“I believe it’s extremely onerous for central banks to eternally make up for unhealthy coverage elsewhere,” Dimon stated. “That places in them in a entice. We’re a bit bit in that entice right now with charges so low around the globe.”
“I’d by no means purchase a destructive fee bond, not until I used to be pressured,” Dimon added. “In historical past everytime you’ve seen something like that, it would not essentially finish effectively.”
President Donald…