Jamie Dimon worried about negative interest rates


The CEO of J.P. Morgan Chase, Jamie Dimon has said this Wednesday that the negative rates of interest are among the only things which are concerning him in the markets.

He said in the World Economic Forum going on in Davos that the only thing he is worried about is the QE, negative interest rates as well as the diversion between the bond prices and stock prices and the yield and similar things as per Dimon.

Dimon has said that it is one of the biggest experiments ever and they do not know what the outcome ultimately is.

The rates of interest being negative have been used in Japan by the Central Banks as well as Europe for trying to stimulate the stagnant stubborn economies. The economists are divided where it comes to the effectiveness for reigniting the growth of the economy, and there are those who fear that the negative rates are going to be able to keep the growth subdued than lifting it.

They are being used in conjunction with the easing in the United States as well as abroad where the banks purchase the assets such as Treasury bills.

Dimon feels it is extremely hard for the banks to make up forever for the bad policies anywhere else. That has put them in a particular trap. He feels that there is a trap with the low rates of interest all around the world. He said that he would not ever buy a bond that has a negative rate until and unless he was forced to do so. He says historically a thing of this sort has not ended well in all likelihood.

Leave A Reply

Your email address will not be published.