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JPMorgan Chase CEO Jamie Dimon on Monday criticized monetary regulators for not easing guidelines which might be elevating prices for debtors shopping for a house that he says are pointless.
Dimon was talking at JPMorgan Chase’s annual investor day, which was held just about, and mentioned his frustration with mortgage lending guidelines that enhance prices and make homeownership much less reasonably priced for lower-income consumers.
“I’ve mentioned over and over, the cost of mortgages is like 50 or 75 basis points higher because of regulations that don’t need to be there, that have no benefit to safety and soundness,” he stated.
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JPMorgan Chase CEO Jamie Dimon stated on the firm’s investor day that regulatory prices are contributing to greater mortgage charges. Supply: (JPMorgan Chase)
“And you know who that hurts the most? Lower-income Americans, that’s who it hurts the most – people buying a small home, their first starter home, and I think they should fix that,” Dimon added.
He went on to say that it’s “a huge disappointment that we have not gotten around to doing that in the last 10 years.”
Dimon additionally mentioned his views on the general financial system, expressing concern in regards to the prospect of stagflation – a interval of elevated inflation coupled with sluggish progress and potential weak point within the labor market.
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“I think the worst one for a bank and for most companies is stagflation, which is basically a recession with inflation,” he stated, including that the chances of stagflation occurring are about two instances what the market expects.
JPMorgan Chase CEO Jamie Dimon additionally mentioned his views on the general financial system, expressing concern in regards to the prospect of stagflation. (Al Drago/Bloomberg through Getty Photos / Getty Photos)
The longtime JPMorgan Chase CEO additionally weighed in on what he sees as complacency from central banks and the markets given price range deficits and tariffs.
“We have huge deficits; we have what I consider almost complacent central banks. You all think they can manage all this. I don’t think they can,” he stated.
Ticker Safety Final Change Change % JPM JPMORGAN CHASE & CO. 264.88 -2.68
-1.00%
Dimon stated that tariffs have created a number of threat within the financial system due to their affect on commerce, including that he thinks the market is complacent about these dangers and the potential for the financial system to sluggish and client costs to rise.
“My own view is people feel pretty good because you haven’t seen effective tariffs,” Dimon stated. “The market came down 10%. It’s back 10%. I think that’s an extraordinary amount of complacency.”
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“When I’ve seen all these things adding up that are on the fringes of extreme, I don’t think we could predict the outcome, and I think the chance of inflation going up and stagflation is a little bit higher than other people think,” he stated. “There are too many things out there, and I think you’re going to see the effect.”
“Even at these low levels, if they stay where they are today, [those are] pretty extreme tariffs. And you also don’t know how every country is going to respond,” Dimon added.
