Dimon dey warn say Fed rate cut no sure as stablecoins dey gain main main acceptance
For JPMorgan India Investor Conference, CEO Jamie Dimon talk say no more Fed rate cuts go happen after di 25 basis points cut for September unless US inflation drop below 3%, wey higher pass di Fed 2% target. Market don expect more easing, but Dimon and some Fed officials no too sure say deep rate cuts go happen dis year. About stablecoins, Dimon talk say e no dey worry am say stablecoins fit threat banks, e see dem as correct payment tools. E believe say banks get chance to provide custody and treasury services for digital dollar reserves. Di stablecoin market don grow from $4 billion for 2020 to $285 billion now, and fit handle $1 trillion in yearly payments by 2030 under GENIUS Act supervision. Crypto traders make dem sabi say Fed rate cut wahala fit affect risk assets, but di growing acceptance of stablecoins fit make digital dollar use strong.
Bearish
Dimon warn say further Fed rate cuts no likely until inflation drop under 3%, e show say high-rate environment go last long. Dis position dey usually reduce risk appetite and fit make cryptocurrency prices fall short term. Even though stablecoins dey accepted more and regulated oversight fit make stablecoin liquidity and digital dollar use better, e no go fit make up for the overall negative effect of tight monetary policy. As result, traders fit expect market to dey cautious with small chance for most cryptocurrencies to go up until Fed begin do aggressive easing.