AMDK Big Shot Sir warned low ses people on Fed Could Hike to 7% De woh

[k1976]

Dimon Warns World May Not Be Ready for Fed at 7%

By Yi Wei Wong and Swati Pandey

September 26, 2023 at 8:36 AM GMT+8
Updated on
September 26, 2023 at 1:44 PM GMT+8

The world may not be prepared for a worst-case scenario of Federal Reserve benchmark interest rates hitting 7% along with stagflation, JPMorgan Chase & Co. CEO Jamie Dimon said in an interview with the Times of India.

“If they are going to have lower volumes and higher rates, there will be stress in the system,” Dimon said while visiting Mumbai for a JPMorgan investor summit. “Warren Buffett says you find out who is swimming naked when the tide goes out. That will be the tide going out.”

 

[k1976]

https://www.bloomberg.com/news/arti...may-not-be-prepared-for-fed-at-7-toi-lmzl7rao

 

[k1976]

Dimon, who has said rates may need to rise further to fight inflation, added that the difference between 5 per cent and 7 per cent would be more painful for the economy than going from 3 per cent to 5 per cent was.

His comments contrast with the consensus view that the Fed is approaching the end of its tightening cycle after 5.25 percentage points of hikes that lifted the benchmark rate to 5.5 per cent – the highest level in 22 years. US policymakers have signalled that rates will need to stay higher for longer to contain inflation, though money markets are pricing in cuts from next year.

The US dollar extended its rise on Tuesday (Sep 26), tracking 10-year Treasury yields – which to some extent was driven by hawkish Fedspeak and Dimon’s warning, according to Christopher Wong, Singapore-based FX strategist at Oversea-Chinese Banking.

 

[k1976]

If the key rate climbed to 7 per cent, it would have serious implications for American businesses and consumers. Already, economists put the probability of a US recession over the next 12 months at 60 per cent – and that’s more optimistic than Bloomberg Economics’ prediction of a slump as soon as this year.

A rate of 7 per cent would douse recent optimism among Fed officials about their ability to engineer a soft landing in the economy with the unemployment rate still very low at 3.8 per cent and signs of prices easing.

“Going from zero to 2 per cent was almost no increase. Going from zero to 5 per cent caught some people off guard, but no one would have taken 5 per cent out of the realm of possibility,” Dimon said. “I am not sure if the world is prepared for 7 per cent.”

The Fed left the target range for its benchmark rate unchanged in a widely expected move earlier this month, though fresh quarterly projections showed 12 of 19 officials favoured another hike this year. One policymaker saw rates peaking above 6 per cent.

 

[k1976]

Fed Chairman Jerome Powell has said future rate decisions will be based on incoming data.

“The world is certainly not prepared for a 7 per cent Federal Reserve funds rate,” Charlie Jamieson, chief investment officer at Jamieson Coote Bonds, told Bloomberg Television on Tuesday.

“At that level, we would expect that we would have a deflationary asset unwind, it would burst a lot of asset bubbles, it just simply wouldn’t be sustainable.” BLOOMBERG

 

[k1976]

Going from zero to 2% was almost no increase. Going from zero to 5% caught some people off guard, but no one would have taken 5% out of the realm of possibility. I am not sure if the world is prepared for 7%.

— Jamie Dimon

 

[laksaboy]

Just the same bunch of fucking Jews of the establishment.

Globalist Jews and their useful idiots.

 

[syed putra]

Don't f%^k with russia!
I remember when russia started soecial military operations, we were bombarded with news of how small russian economy was. About size of texas. If sanctioned imposed, country would collapse.

Now we are told, russia has overtaken germany as 4th biggest economy. And the entire world economy is buckling from russian oil and gas and agriculture blockade.

 

[Willamshakespear]

A Fed rate hike beyond 4% would hurt NOT just the World as US dollar is the reserved currency of the World, but will hurt Americans as they are the ones whom will have to SERVICE the debts, thru higher inflationary pressures over imports of goods & services, taxes, etc.

There actually is NO need to hike the Fed rate, as CURRENTLY, the US dollar is still where Humans worldwide would trust in. The US dollar is BACKED by National assets & PROJECTION of POWER to the rest of the World, that it would do WHAT IT TAKES to secure life savings of all, unlike BRICS whereby no matter whatever propaganda it attempts to sell, the trust in their dollars are NEVER even considered by Humans with their life savings, thru their failed banking systems, inability to form consensus & RESPONSIBLITIES, etc, by each member State where as day goes by, the panic escalates every moment by their whim & fancies on the Rule of law & absence of debates upon such policies.

With the RUS invasion upon UKR, commodity prices such as wheat & oil had risen, thus causing inflationary pressures. Ultimately, Humans Worldwide still trust the US dollar & had invested in the US dollar & bloated the US Treasury. Such is a double edged sword as it may raise American buying power, it may cause American producers to lose market share, but fortunately still, USA is a SELF RELIANT Nation & does not need imports as it has ALL it needs, like Australia which is not called the 'Lucky Country' for nothing.

It will need strong leadership & more CRITICALLY, a far sighted & visionary Congress of Elected Representatives to steer the nation to greatness, plan its economy down to the smallest detail & wear the mantle of leadership of Free Nations.

Perhaps it may consider SOCIAL DEMOCRACY where NEEDS of the many are highly considered, instead of LIBERAL DEMOCRACY where WANTS of every single individual is pandered to for votes in order to stay in power.

 

[ftan42]

the higher rate hike causes the curve rate to invert longer than usual, those countries cannot tahan and have to sell their 20 yrs or higher bonds and are making huge losses on these long-term bonds

 

[Willamshakespear]

None who bought US Treasury bonds made losses as US had never defaulted.

It's only the interest rates promised that one would had lost if bought at covid era which was almost at zero.

A rate hike at 7% would salivate investors with savings, but with such rates, high borrowing costs will stifle entrepreneurship, even innovative ones critical for evolution...

 

[ftan42]

If you brought the Treasury bonds and kept them to maturely date, you get back the bond face value plus the yearly interest without any loss but again there is still a loss on the total collected interest rate because of lower interest(brought earlier) compared to the current higher interest rate Bond
take eg the SVB case, its customers rush to draw out their deposit with the bank, and the bank is forced to liquidate its long-term Treasury Bond prematurely making losses on the Bond's face value as the interest rate rises

 

[Willamshakespear]

If one bought official US Treasury bonds, one would have the official certificates that would be recognised by American banks, even if overseas foreign banks collapsed.

That is the trust that USA had gained Worldwide with its Treasury Bonds.

Should one saved in physical US dollars instead or worse - hard earned life savings in BRIC currencies, if the oversea foreign banks collapsed, the bank owners will run away with everything...as happened in China recently

 

[k1976]

Moment of huat big big seem getting closer, gentlemen

 

[k1976]

If one bought official US Treasury bonds, one would have the official certificates that would be recognised by American banks, even if overseas foreign banks collapsed.

That is the trust that USA had gained Worldwide with its Treasury Bonds.

Should one saved in physical US dollars instead or worse - hard earned life savings in BRIC currencies, if the oversea foreign banks collapsed, the bank owners will run away with everything...as happened in China recently

But US Treasury not so easy available to HDBee pigeon hole dwellers

 

[Willamshakespear]

Ultimately, it"s one confidence in our World's stable reserve currency the US Dollar is & the SUPPORT it needs to remain stable to protect life savings from dictatorship & corrupt governance.

Too high interest rates will harm USA & its citizens as well as to World In need of loans. Too low, some may frivolously overspend & create bubbles.

Thus a need for pragmatic considerations. Such lays within the responsibilities of leaders

For the common folks whom concerns are often butter & bread issues, best to more aware of the bigger picture of economics - trade which is the lifeblood of Humankind, & realise where pragmatizam lay in as our founding & forefathers had done to give us our today's ..

 

[Willamshakespear]

Duplicate post, sorry

 

[k1976]

Ultimately, it"s one confidence in our World's stable reserve currency the US Dollar is & the SUPPORT it needs to remain stable to protect life savings from dictatorship & corrupt governance.

Too high interest rates will harm USA & its citizens as well as to World In need of loans. Too low, some may frivolously overspend & create bubbles.

Thus a need for pragmatic considerations. Such lays within the responsibilities of leaders

For the common folks whom concerns are often butter & bread issues, best to more aware of the bigger picture of economics - trade which is the lifeblood of Humankind, & realise where pragmatizam lay in as our founding & forefathers had done to give us our today's ..

Common folks = Cannon flodders?
Must let these common ah foks laboured day and nights to chase after some "dreams"

 

[laksaboy]

High interest rates = those who constantly borrow money will be fucked.

From business owners to daft Sinkies sold on the myth of HDB 'home ownership' and want to BTOgether.