JPMorgan CEO Believes Fed Rate Cuts are Unlikely and Stablecoins Pose No Threats to Banks

JPMorgan Chase CEO Jamie Dimon has shared his belief that stablecoins don’t pose a threat to traditional banks. He also believes that there will be no Fed rate cuts anytime soon due to persistent inflation. Dimon appeared for an interview with CNBC-TV18, during which he shared that further rate cuts would be difficult unless the country had a period of inflation.

He believes the inflation is “stuck at 3%” and shows a clear downward trend. These comments dampen the current sentiments as the market was expecting several rate cuts in the upcoming months. Several analysts were forecasting up to five federal rate cuts over the next year.

JPMorgan CEO Believes No Rate Cuts in the Coming Months

Dimon’s outlook stands in contrast to the prevailing sentiment among investors, who have been pricing in a series of cuts. Interest rate reductions are typically seen as a positive catalyst for crypto markets, as they encourage investment in riskier assets by lowering the cost of borrowing. This effect was recently demonstrated when the Fed’s first rate cut of 25 basis points in 2025 pushed Bitcoin’s price above $117,500 for the first time in over a month.

According to CME FedWatch data, markets are anticipating another 25 basis point cut in both late October and early December. The Fed's own projections, while showing a wide range of possibilities, also hint at two more cuts before the end of the year, with an additional cut potentially occurring in 2026. This comes as the latest US inflation data from September 11 revealed a 0.4% rise in August, bringing the annual inflation rate to 2.9%, still above the Fed’s 2% target.

Beyond monetary policy, Dimon also shared his views on stablecoins, a topic that has become a key policy concern for banks following new regulations passed by Congress in July. Dimon said he is “not particularly worried about” stablecoins and that while banks should “be on top of it and understand it,” they don’t pose a significant threat. He acknowledged that stablecoins offer a way for people, both “good guys” and “bad guys,” to hold US dollars outside the traditional banking system.

JPMorgan is already exploring this space, with Dimon noting that the bank is actively involved in stablecoins and that the banking sector is “looking at whether they should have a consortium” to launch a token. Despite the growing interest, he questioned whether central banks would need to use stablecoins among themselves, suggesting their use will “develop over time.”

His comments come amidst calls from banking groups for Congress to tighten stablecoin laws, arguing that loopholes allowing issuers to pay interest on these tokens could undercut bank accounts and potentially destabilize the financial system. Dimon’s balanced perspective offers a nuanced view, seeing stablecoins as a development to be managed rather than a looming threat.