As the financial world rushes to gold and bitcoin to hedge against inflation, JPMorgan is going in the opposite direction and choosing to hoard money.
This was stated by CEO Jamie Dimon during a conference. As reported by CNBC, Dimon is pushing the financial institution to hoard cash instead of Treasury bonds or other types of investments because he believes inflation will drive the Fed to raise interest rates.
Jamie Dimon stated:
“We have a lot of money and capacity and we’re going to be very patient, because I think you have a very good chance that inflation will be more than transitory.”
Your strategy is clear:
“If you look at our balance sheet, we have $500 billion in cash, we’re actually hoarding more and more cash waiting for opportunities to invest at higher rates,” said Dimon. “I hope to see higher rates and more inflation, and we’re prepared for that.”
The US Inflation Debate
In the United States, after the Federal Reserve’s liquidity injection, there have been fears about inflation risks. Everyone is reacting as they please. JPMorgan apparently prefers to keep its money.
Other big companies prefer to accumulate gold and bitcoin.
It remains to be seen how the Fed will react to the risk of rising inflation. The possibility of higher interest rates had already shocked the markets.
JPMorgan: money is better than bitcoin
Jamie Dimon is not a fan of BITcoin. This explains why your bank prefers to accumulate cash rather than resorting to other solutions such as bitcoin accumulation.
However, although it is a special fund, JPMorgan is starting to offer bitcoin to its clients. This is because, as the CEO explained, he may be hostile to bitcoin, but apparently JPMorgan’s customers like him. Interestingly, though, he doesn’t think of Bitcoin as a defense against inflation. High volatility is likely to remain unsecured for the US bank.