JPMorgan CEO Says Inflation Limits Fed Rate Cuts, Stablecoins Pose No Threat

Highlights:

• JPMorgan CEO says Fed can’t cut rates much unless inflation drops significantly soon.
• Dimon believes stablecoins are safe and won’t threaten traditional bank deposits.
• Stablecoins offer cheaper, faster payments, attracting big companies and growing investor interest rapidly.

JPMorgan CEO Jamie Dimon said the U.S. Federal Reserve can’t lower interest rates much unless inflation falls, and he isn’t concerned that stablecoins are a risk to banks. He said in a CNBC-TV18 interview that if inflation stays high, the Federal Reserve will struggle to cut interest rates. 

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He noted that inflation appears stuck near 3% and could even rise, though he hopes for steady economic growth and a rate cut driven by strength in the economy rather than by a recession. Dimon’s comments have made people less sure the Fed will cut rates many times, even though some still hope for up to five cuts in the next year.

Lower rates often help crypto because borrowing gets cheaper and investors take more risks.  The Fed already cut rates by 0.25% on Wednesday, the first cut of 2025, which pushed Bitcoin from about $113,000 to over $117,500, its highest in more than a month. Markets now expect another small cut in late October and one more in early December.

💥BREAKING:

🇺🇸 FED President Raphael Bostic expects no further rate cuts this year after the September rate cut. pic.twitter.com/SH1zT9kxuK

— Crypto Rover (@rovercrc) September 22, 2025

New Fed Governor Stephen Miran, chosen by President Trump, wants big rate cuts totaling 1.25 percentage points during the rest of 2025. He said tariffs, limits on immigration, and tax changes have lowered the neutral interest rate, so current rates are about 2 points too high and could cause unnecessary job losses. But other Fed officials disagreed. St. Louis Fed President Alberto Musalem warned that more cuts could make policy too loose, and Atlanta Fed President Raphael Bostic said inflation is still too high to ease rates much.

Dimon Backs Stablecoins Despite Bank Deposit Fears

Dimon warned that prices could stay high because of big government spending, more military buildup, changes in global trade, and fewer people moving to the U.S. He said these factors could raise wages and keep prices high, making it harder for the Fed to keep prices stable and jobs strong.

Dimon also said he isn’t worried that stablecoins will hurt bank deposits. He believes blockchain technology is useful but sees a difference between real uses and risky crypto trading. Dimon’s relaxed view on stablecoins is very different from big U.S. banking groups that want tougher rules to stop digital dollars from competing with banks.

Five major banking trade groups have asked Congress to tighten the GENIUS Act, and warned that stablecoins paying interest could cause huge amounts of money to leave bank accounts. A report from the U.S. Treasury Department estimates that yield-paying stablecoins could pull about $6.6 trillion out of banks, changing how banks get their funding.

In digital asset market structure legislation, it is important that the requirements in the GENIUS Act prohibiting the payment of interest and yield on stablecoins are not evaded.

The latest from BPI, @ABABankers, @ConsumerBankers, @FSForum and @ICBA: https://t.co/YOta4d4UDA

— Bank Policy Institute (@bankpolicy) August 12, 2025

Meanwhile, Coinbase and other crypto firms still offer stablecoin yields, saying the bans only apply to issuers, not to platforms like theirs. 

Payments Becoming Faster and Cheaper

Stablecoins let people send payments up to 13 times cheaper and settle instantly. The stablecoin market itself has grown fast from $4 billion in 2020 to more than $285 billion today and could reach $1 trillion in yearly payment volume by 2030.

Coinbase research shows stablecoin use hasn’t caused deposits to leave community banks in the past five years, challenging industry warnings. Big companies like Amazon and Walmart are looking at stablecoins to cut payment costs. U.S. savings accounts pay about 0.6% interest, while stablecoins can offer up to 5%, putting pressure on banks.

Dimon believes stablecoins will grow as a real payment method. He emphasized that JPMorgan is exploring stablecoins, and the banking sector is considering a consortium to launch a token. “I’m not sure central banks need to use it among themselves, so it’ll develop over time,” he said.

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