JP Morgan CEO Doesn’t Believe US Will Have Negative Rates

March 3, 2016 Share Print 0

JPMorgan Chase Chairman and CEO Jamie Dimon said Thursday he does not see negative interest rates happening in the United States, even though they are now being used in Europe and Japan.

“In the United States, I don’t think [negative rate policy] is in the cards,” Dimon told CNBC’s “Squawk Box,” on the sidelines of the bank’s annual CEO summit. “People are kind of breathless on that one.”

“Overseas, I don’t think it’s going to work that well,” he argued, adding that negative rates will have “a lot of unintended consequences.”

Besides negative rates, investors are worried about the unwinding of quantitative easing and the economic slowdown in China, Dimon said.

“The market is sometimes irrational and sometimes rational” about such worries, he said. “I’m not going to diminish those concerns. But if China grows at 4 percent or 5 percent, and American is growing at 2 percent, that’s a good thing.”

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.