After the Federal Reserve significantly cut interest rates, Morgan Stanley CEO poured cold water: skeptical about the prospects of a "soft landing"

According to the Zhitong Finance and Economics APP, Jamie Dimon, CEO of JPMorgan Chase, stated on Friday that he remains skeptical about whether the U.S. economy can achieve a soft landing after the Federal Reserve's first rate cut in over four years. He also mentioned that he will not take this outcome lightly.

He said, "I am more skeptical than others. I think the probability is lower. I hope it is true, but I am also more skeptical that inflation will disappear so easily, not because it has not fallen, but because it has fallen and can fall further."

Dimon added that the rate cut will have almost no impact on the U.S. presidential election.

The Federal Reserve cut its benchmark interest rate by 50 basis points on Wednesday in an effort to achieve a so-called "soft landing." Prior to this announcement, Dimon stated that whether the Fed cuts rates by 25 basis points or 50 basis points, it will not be "earth-shattering."

For over a year, Dimon has been warning that U.S. inflation may be more challenging than investors expect, citing reasons such as deficit spending and "global remilitarization." In his annual letter to shareholders in April this year, he wrote that JPMorgan Chase is prepared for interest rates of 2% to 8% or even higher.

Dimon stated, "I will not take the outcome of a soft landing lightly." "We may have transitioned from lower rates and lower inflation to slightly higher rates and higher inflation. In the future, whatever the outcome, we will deal with it. Economists are used to dealing with this situation. This is not a disaster."