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Originally Posted by Normal
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Your source, Forbes, actually says “ A chilly scenario for the U.S. economy, in which interest rates climb as high as 8% as the effects of the unprecedented monetary policy taken to combat inflation take hold, is still very much on the table, according to JPMorgan Chase CEO Jamie Dimon. . . .
“Coupled with Dimon’s concerns about the potential for “stagflation,” a recession characterized by lingering high inflation, he warned interest rates could soar to “8% or even more,” a far cry from the already 22-year high rates of over 5% and going against conventional wisdom of a looming decline in rates (U.S. interest rates have not been 8% or higher since 1990).”
Note that “conventional wisdom,” which tends to be more accurate, disagrees with his position. Note that he doesn’t say that this WILL happen, but COULD happen if monetary policy LEADS TO “stagflation,” which it hasn’t yet and probably won’t. Note that the monetary policy he is talking about is set by the Federal Reserve Bank, and the White House has NO SAY over that policy. If Trump is elected, the Fed will keep on doing whatever it thinks best with the same people making the decisions.
I believe that the Fed is doing a good job and making wise decisions, even if they aren’t the decisions many of us with less expertise would prefer. Dimon is charismatic and powerful, but he has made many predictions over the years that didn’t come true, as well as many that did.