JPMorgan CEO Jamie Dimon predicts the US Federal Reserve will struggle to cut interest rates if inflation remains at 3%. Dimon’s comments dampen market expectations of multiple rate cuts, despite a recent 25 basis point cut that boosted Bitcoin to over $11,500. The Fed is expected to cut rates again in October and December.

The Fed’s projections hint at two more rate cuts this year, with another possible in 2026. Recent US inflation data showed a 2.9% rise over the last 12 months, exceeding the Fed’s target rate of 2%. Dimon is “not particularly worried” about stablecoins, but emphasized the need for banks to understand and regulate them.

Stablecoins have become a key policy issue for banks since Congress passed laws regulating them. Dimon believes stablecoins could be used by various entities, including bad actors and certain countries, to access dollars outside the US banking system. JPMorgan is exploring involvement in stablecoins and the possibility of launching a token consortium.

Read more at Cointelegraph: Dimon Says Fed Won’t Cut Rates Until Inflation Drops