JPMorgan Chase CEO Jamie Dimon has cautioned that U.S. interest rate cuts are unlikely to accelerate until inflation shows a clearer decline, tempering market expectations of a looser monetary policy cycle.
Speaking separately on digital assets, Dimon added that he is “not particularly worried” about stablecoins, though he acknowledged they warrant continued monitoring by banks and regulators.
Inflation Stuck Near 3%
In an interview with CNBC-TV18 on Monday, Dimon said the Federal Reserve will find it difficult to justify deeper rate cuts if inflation does not ease. U.S. consumer prices rose 0.4% in August, leaving annual inflation at 2.9%, still above the Fed’s long-term 2% target.
“If inflation does not go away, it’s going to be hard for the Fed to cut more,”
Dimon noted, adding that inflation appears “a little bit stuck at 3%.”
While he expressed hope for “decent growth,” he warned that rate reductions would be more sustainable if they came from cooling inflation rather than economic weakness.
Market Pricing vs. Fed Guidance
Dimon’s remarks diverge from market expectations.
Futures data from the CME FedWatch tool show traders anticipate up to five cuts over the next 12 months, following the Fed’s initial 25 basis point cut earlier this month. By contrast, the Fed’s own projections point to two more cuts this year, with the possibility of another in 2026.
The debate matters for digital assets.
Historically, looser monetary policy has supported risk assets, including cryptocurrencies, by lowering the cost of capital. Bitcoin briefly surged above $117,000 last week, its highest in more than a month, after the Fed delivered its September rate cut.
Dimon on stablecoins
Turning to digital assets, Dimon struck a measured tone on stablecoins. The tokens, which are pegged to fiat currencies and widely used for payments and trading, became a sharper policy focus after Congress passed new legislation in July to regulate their issuance.
Dimon said he was “not particularly worried” about stablecoins disrupting traditional banks but emphasized that the sector should remain attentive.
“There’ll be people who want to own dollars through a stablecoin outside the U.S., from bad guys to good guys to certain countries,”
he said, suggesting stablecoins can serve niche purposes that banks may not fully capture.
JPMorgan itself has experimented with blockchain-based settlement and has been linked to industry discussions around a potential banking consortium token.
Dimon noted that such initiatives remain exploratory:
“I’m not sure central banks need to use it among themselves, so it’ll develop over time.”
Regulatory landscape and banking concerns
U.S. banking groups have lobbied Congress to tighten stablecoin rules further, arguing that certain loopholes allow issuers to offer interest or yield products that could compete with bank deposits.
For now, Dimon’s remarks highlight a two-track perspective: cautious realism on monetary policy and guarded curiosity on stablecoins. Both issues, interest rate direction and digital dollar substitutes, are likely to remain at the center of U.S. financial debates heading into 2026.
Tanya Petrusenko
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