Stablecoins on the Radar: Jamie Dimon’s Take for Banks

JPMorgan’s CEO Jamie Dimon just tossed a hefty curveball. The Federal Reserve isn’t in any hurry to slash interest rates until inflation decides to behave and actually drop.

Dimon, the big boss at America’s largest bank, told CNBC-TV18 that inflation is playing hard to get, sticking stubbornly around 3%.

Inflation

If inflation doesn’t go away, it’s going to be tough for the Fed to cut more, he said, sounding like a finance oracle with no patience for wishful thinking.

But markets have been dreaming up a feast of rate cuts, some expecting up to five over the next year.

But Dimon’s not buying it. He’s crossing his fingers for decent growth and a rate cut that’s earned, not gifted by a recession meltdown.

The last time the Fed flicked the rate switch was a modest 25 basis points cut back in early September, driving Bitcoin past $117,500 for the first time in over a month, because nothing pumps crypto like cheaper money.

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Stablecoins in the spotlight

The crowd’s still betting on a couple more cuts by year-end, or at least, according to CME FedWatch, and even more in 2026 lurking in the shadows.

But inflation data from September 11 showed prices inching up 0.4% in August, pushing the annual rate just shy of 3%, way above the Fed’s cozy 2% target. So, the Fed’s crystal ball is foggy, to say the least.

Switching gears, Dimon threw stablecoins into the spotlight, not as villains ready to topple banks, but as curiosities banks should keep on their radar.

These digital dollars have become headline material since Congress slapped regulations on them in July.

Not particularly worried, said Dimon, urging banks to get savvy with stablecoins.

After all, these tokens might be the preferred buck for everyone in countries where having cold-hard digital dollars outside traditional banks feels safer.

Wait and see

He dropped the tease that JPMorgan itself floats in these waters and hinted that banks might even band together to launch their own stablecoin consortium.

But the idea of central banks using stablecoins among themselves? That’s still a wait and see situation.

Banking groups are lobbying Capitol Hill to seal loopholes they claim let stablecoin issuers dish out interest, potentially siphoning deposits and shaking up the banking system’s cozy balance.

So Dimon delivers a mixed bag, no free rate cut lunches just yet, and stablecoins are more a nibble on the radar than a full-blown buffet.