The CEO of JPMorgan Chase shared his stance on a hike in interest rates.
According to the tweet of Walter Bloomberg, JPMorgan Chase CEO Jamie Dimon stated that the Federal Reserve four hike in the interest rate of 0.25% will not have any impact on the economy.
This tweet of Dimon is trying to explain to every money market investor (stock/share/crypto) that there is no negative impact will take place on any market.
This statement of Dimon is based on his own point of view and here we can’t ignore his opinion because he stands at that level, where his statements are worth and probably it will give better confidence to the crypto and stock market investors to don’t think that the market will face any correction.
Meaning of increasing interest rate
According to experts, if any countries’ government is planning to increase the interest rate, that is a pure effort of the government to make the economy of the country strong. Because under high-interest rates, foreign investment will enter the country like government bonds, etc. And on the other hand countries citizens will try to save their funds in their bank account instead of stock or any other market.
In March 2021, the Federal Reserve hinted that it will increase the interest rate. That resulted in a big correction for the crypto and non-crypto market. That was a dramatic situation for the space because that was only a hint to increase. But now in this year, we are on a fixed four schedule of the Federal Reserve to increase the rate by 0.25% in every hike. And this was the main reason to see the recent correction in this market.
If we look at this matter in very deep then we will find that the crypto and stock industry is a part of interest, where people are not going to make 1-2%, so this is a clear thing that market investors are responding to the prediction of the financial market experts, which are saying that market will face huge correction because of this decision of Federal Reserve.
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