Why Is America's Biggest Bank Hoarding Cash?

JPMorgan Chase chief Jamie Dimon (Diane Bondareff for JP Morgan Chase)  

CNBC: Jamie Dimon says JPMorgan is hoarding cash because ‘very good chance’ inflation is here to stay 

* JPMorgan Chase has been “effectively stockpiling” cash rather than using it to buy Treasuries or other investments because of the possibility higher inflation will force the Federal Reserve to boost interest rates, Dimon said Monday during a conference. 

 * “We have a lot of cash and capability and we’re going to be very patient, because I think you have a very good chance inflation will be more than transitory,” said Dimon, longtime JPMorgan CEO. 

 * The bank now expects $52.5 billion in net interest income in 2021, down from the $55 billion it disclosed in February, as the firm stockpiled cash and on lower credit card balances. 

Jamie Dimon believes cash is king – at least for the time being. JPMorgan Chase has been “effectively stockpiling” cash rather than using it to buy Treasuries or other investments because of the possibility higher inflation will force the Federal Reserve to boost interest rates, Dimon said Monday during a conference. 

The biggest U.S. bank by assets has positioned itself to benefit from rising interest rates, which will let it buy higher-yielding assets, he said. 

“We have a lot of cash and capability and we’re going to be very patient, because I think you have a very good chance inflation will be more than transitory,” said Dimon, longtime JPMorgan CEO.

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WNU Editor: JP Morgan is apparently sitting on $500 billion in cash. If there was ever a clear sign that higher inflation and interest rates are coming, coupled with a stock market decline/crash, this is it.