JPMorgan has large amounts of cash accumulated

The CEO of JPMorgan Chase, Jamie Dimon indicated that the institution is accumulating large amounts of cash to prepare for a possible rise in inflation.

The main objective of the largest bank in the United States is to be able to benefit from an upcoming increase in interest rates that may be generated.

“If you look at our balance sheet, we have $ 500 billion in cash. In fact we have been accumulating more and more cash waiting for opportunities to invest at higher rates”, highlighted Dimon during a virtual conference.

According to the head of the institution, the forecasts suggest that this inflationary phenomenon will not be temporary, but rather could generate higher interest rates.

“We have a lot of cash and capacity and we are going to be very patient, because I think there is a good chance that inflation will be more than transitory,” he added.

The debate on rising prices in the US has heated up in recent weeks, after learning that the consumer price index (CPI) rose 0.6 % in May and has placed year-on-year inflation at 5 %, the highest figure since August 2008.

K. Tovar

Source: Bancaynegocios