Please try another search
© Reuters. FILE PHOTO: JPMorgan Chase CEO Jamie Dimon speaks at the North America's Building Trades Unions (NABTU) 2019 legislative conference in Washington, U.S., April 9, 2019. REUTERS/Jeenah Moon
NEW YORK (Reuters) -JPMorgan Chase & Co Chief Executive Jamie Dimon said on Monday the bank is holding around $500 billion in cash, putting it in a position to benefit from higher interest rates.
"We've actually been effectively stockpiling more and more cash, waiting for opportunities to invest at higher rates," Dimon said during a virtual conference held by Morgan Stanley (NYSE:MS). "So our balance sheet is positioned (to) benefit from rising rates."
Dimon, who heads the largest U.S. bank by assets, said he expects rising inflation to result in higher interest rates over the next 9 months.
"I think you're also going to have a very, very strong economy," which will also benefit the retail bank, he said. "We try to take all that in consideration (when) we manage the balance sheet."
The Federal Reserve is expected to make a statement on Wednesday that will indicate when the U.S. central bank is likely to begin paring back its unprecedented monetary stimulus.
The Fed's preferred inflation gauge, the core personal consumption expenditures price index, jumped in April to 3.1%, its highest annual rate since July 1992.
Dimon also forecast that the bank's bond and equity trading division will make $6 billion in revenues this quarter, and its investment bank may report one of its best-ever quarters.
"I would just use a number like up 20% from both prior year and prior quarter. It could be 15% to 20%," Dimon said.
Dimon said the investment bank is benefiting from several big deals that "may or may not close" this quarter, as well as strong client activity in equities and debt capital markets and mergers and acquisitions.
(Reuters) -Amazon.com Inc-backed electric vehicle start-up Rivian Automotive is in talks with ministers about building a factory in the UK that could include a big state support...
(Reuters) -The war against COVID-19 has changed because of the highly contagious Delta variant, the U.S. Centers for Disease Control said, proposing a clearer message, mandatory...
By Michael Erman and Carl O'Donnell (Reuters) -Top U.S. infectious disease expert Dr. Anthony Fauci said on Friday he hopes regulators as soon as next month could start granting...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.