Since the installment of U.S. President Donald Trump’s administration, the country’s gross domestic product has grown by an average of 2.7% per quarter. Dimon’s comments come as the Federal Reserve raised the federal funds rate by 25 basis points in September, completing its third rate hike this year with the general consensus expecting that a fourth rate hike will occur before year’s end.
However, JPMorgan CEO Jamie Dimon was tepid when it came to the future of the banking business as Trump’s $1.5 trillion of tax cuts are expected to scale back in 2019. Dimon also mentioned that in addition to rising interest rates, trade wars could be a concern, but the economy has largely been able to shrug off its effects thus far.
“If rates go up because you have inflation, that is not a plus. That is a bad thing,” Dimon said. “So far, we still have a strong economy in spite of these increasing overseas geopolitical issues bursting all over the place.”
However, a prolonged dose of rising rates and trade wars would have negative implications on the economy moving forward.
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