One risk to the markets? “The only thing I have trepidation about is negative interest rates,” J.P. Morgan Chase CEO Jamie Dimon says. Davos2020
told CNBC on Wednesday that negative interest rates are one of the only things that concern him in a market that's otherwise in a "Goldilocks place."
"The only thing I have trepidation about is negative interest rates, QE, and the diversion between stock prices and bond prices and yield and stuff like that," Dimon said on"It's kind of one of the great experiments of all time, and we still don't know what the ultimate outcome is," Dimon said. Negative interest rates have been used by central banks in Japan and Europe to try to stimulate their stubbornly stagnant economies. Economists are divided over their effectiveness to reignite economic growth, and some fear negative rates can keep growth subdued rather than lift it. They have been used in conjunction with quantitative easing, in the U.S. and abroad, where central banks purchase assets like Treasury bills.
"I think it's very hard for central banks to forever make up for bad policy elsewhere," Dimon said. "That puts in them in a trap. We're a little bit in that trap today with rates so low around the world." "I would never buy a negative rate bond, not unless I was forced," Dimon added. "In history whenever you've seen anything like that, it doesn't necessarily end well."
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
How Jamie Dimon can grab Larry Fink’s green haloNow that the BlackRock boss has got serious about climate change, the focus is on his JPMorgan peer. As CEO of the biggest U.S. bank, Dimon’s sway over corporate debt gives him more power than any equity activist. Deploying it would turn his bank from laggard to leader.
Weiterlesen »
Dimon says the only financial market bubble out there right now is in sovereign debtJamie Dimon says that the only market bubble he sees right now is in sovereign debt. He added that historically low interest rates around the world have kept markets calm amid rising levels of debt, including negative rates in Europe.
Weiterlesen »
Jamie O'Hara shares grim photo of red raw skin as he gets tattoos removedFootballer Jamie O'Hara has been taking his fans every step of the way as he gets his tattoos removed in a painful laser procedure
Weiterlesen »
'Outlander' Season 5 Trailer: Jamie & Claire Are on the Wrong Side of Revolution.Outlander_STARZ Season 5 Trailer: Jamie and Claire Are on the Wrong Side of Revolution
Weiterlesen »
Jamie Otis Claps Back at Mom Shamer Over Daughter, 2, Not Being Potty Trained Yet: 'I've Tried'Jamie Otis, mom to daughter Henley, is currently expecting a baby boy with husband Doug Hehner
Weiterlesen »
Trump Criticizes Federal Reserve At Davos For Holding Back U.S. EconomyTrump criticized Federal Reserve at Davos for holding back U.S. economy by skleb1234
Weiterlesen »