Jamie Dimon warns JPMorgan’s Treasury Market ‘Kerfffle’ that could force the fed to intervene
JPMorgan Chase CEO Jamie Dimon is cycling for a disruption in the near $ 30 trillion US treasury market-he said he might force the Federal Reserve to enter, as it happened on the early days of the Covid-19 Pandemic.
“There will be a kerfuffle in the Treasury markets because of all the rules and regulations,” Dimon said in a Friday call to revenueWarning that the Fed will not act until “they will start to panic a bit.”
Dimon’s comments come as the bond yields a spike and increased volatility in the market. The rising harvest has suggested that investors pull from popular trading that exploit gaps between the boxes of the box and futures, increasing stress to a market that has traded trading tensions under the rising US-China trade war.
Dimon said current regulations prevent banks from treading as consumers when liquidity is drowning. In 2020, a similar situation forced the Fed to launch a multi-trillion-dollar bond purchase program to maintain market functioning.
He is pushing for reforms that will allow banks to act more independently as mediators. An idea under the discussion is the release of wealth from the leverage ratio calculations, which may allow institutions to buy more government debt without pressing capital buffers.
“If they don’t (change the rules), the Fed needs to be intermediate, which I think is a bad idea of policy,” Dimon said.
The Treasury market plays a major role in global finances, which sets the tone for everyone from mortgage rates to corporate bond yields. Dimon warned that if the system was locked again, the consequences could be thrown throughout the economy.
A disruption to the Treasury market leading to Fed’s intervention can drive some investors towards Bitcoin (BTC), which are often seen as a fence against financial instability. That appears to be the case in 2020, when the price of Bitcoin collapsed following the aggressive response of the Fed’s stimulus. Other factors, including 2020 of cryptocurrency divide Impact, may also be factored in the Bitcoin jump jump.
