Unexpected Interest Statement from Bitcoin Enemy JP Morgan CEO!

US central bank FEDraised interest rates to 5.5% to cope with high inflation.

The FED, which left the interest rate constant in its last decision, stated that it would proceed depending on the data regarding the interest rate increase.

The market’s expectation was that the FED would keep interest rates constant at 5.5% for a while and then reduce them.

However JP Morgan CEO Jamie DimonAn unexpected interest rate announcement came from .

Because the famous CEO’s statements contradict the majority opinion that the FED is approaching the end of the tightening cycle after the increase that raised the interest rate to 5.5%, the highest level in 22 years.

While US policy makers signal that interest rates must remain high for a longer time to control inflation, markets expect and price a reduction in interest rates starting from 2024.

Bloomberg’According to the news, Jamie Dimon said that interest rates in the USA could reach 7%.

Speaking to Times of India JP Morgan CEO said the FED may raise interest rates to 7% with stagflation and the world may not be prepared for the worst-case scenario.

“Interest rates may need to increase further to combat inflation. At this point, increasing the interest rate from 5% to 7% will be more painful for the economy than increasing it from 3% to 5%.

The interest rate increase from zero to 2% was barely an increase at all.

The fact that it went from zero to 5% caught some people off guard, but no one is betting much higher than 5%.

So I’m not sure if the world is ready for 7 percent.”

Negatively affected by the FED’s interest rate increases Bitcoin It hit its peak of $69,000 in November 2021, when the FED started increasing interest rates.

Since the subsequent bear market is directly related to the FED’s interest rate increases, a policy change here could end the bear market and BTC’It is thought that it may return to its old days.

*This is not investment advice.