JPMorgan Chase President: Fed Not So Flamboyant And Cryptocurrencies Are ‘Type Irrelevant’

The president of JPMorgan Chase said that cryptocurrency “was kind of irrelevant in the plan of things.” Commenting on the US economy, he defended the Federal Reserve’s hawkish stance, noting that if the Fed’s action “causes a recession that’s a bit deeper for a while” then ” That’s the price we have to pay.”

JPMorgan Chase Chairman on the US economy and recession

JPMorgan Chase President Daniel Pinto commented on the US economy and cryptocurrencies in an interview with CNBC, published Monday. Pinto is also the managing director of global investment banking and the CEO of Investment & Corporate Banking.

The 59-year-old executive grew up in Argentina as a child, where inflation is often very high, he said, noting that living with rampant inflation is “very very very stressful.” Price increases in Argentina averaged more than 300% a year from 1975 to 1991.

Pinto selected:

That’s why when people say, ‘The Fed is too hawkish,’ I disagree. I think it’s important to put inflation back in a box… If it causes a recession a little deeper over a period of time, that’s the price we have to pay.

The JPMorgan chairman stressed that the Federal Reserve cannot allow inflation to take root in the economy, stressing that an early return to easier monetary policy risks repeating the mistakes of the past. the 70s and 80s.

Cryptocurrencies are “Type Irrelevant”

Commenting on cryptocurrencies, the JPMorgan executive stated that recently there has been little progress on institutional adoption of cryptocurrencies. Pinto says:

The fact is, the current form of cryptocurrency has become a minor asset class irrelevant in the scheme of things.

However, he notes: “But the technology, the concepts, something might happen there; just not in its current form. “

Contrary to Pinto’s beliefs, many large companies and banks are seeing increasing institutional interest in cryptocurrencies and are ramping up their crypto offerings. Nasdaq established a cryptocurrency unit in September due to increased demand for the digital asset among institutional investors. Financial giant State Street recently said it is seeing growing demand from institutions. In May, Citi, Wells Fargo, and BNY Mellon invested in crypto firm Talos citing accelerated institutional adoption of crypto assets.

JPMorgan Chase CEO Jamie Dimon also believes that blockchain and decentralized finance (defi) are real. However, he said that cryptocurrencies, including bitcoin, are “decentralized Ponzi schemes”.

Read more: Women remain bullish on crypto investment despite market lull: Survey

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