FOMC Moment Is Near: Jamie Dimon Warns It’s Possible The Fed Could Be Forced Into A Sharp Move

The latest data showed U.S. consumer prices were up by 5.3% in the year to August, slightly down from the 13-year high of 5.4% in July. But the DXY bullish momentum is on the go.

DXY September 21

The rise is above the march peak 93.43, yet it never reaches to 94.00. If fed are happy about the price then there should not be huge impact by this time.

Recent jobs report and inflation data indicting a taper anouncement although we should not expect it soon.

JP Morgan CEO

With CNBC TV JP Morgan CEO, Jamie Dimon said that if the U.S. continues to see inflation running hot over the next few months then the central bank could be forced to act quickly. He also warned investors that the Federal Reserve could still be forced into a sharp policy move next year — despite its best efforts to soothe concerns over inflation and interest rates.

If inflation is continue to grow higher then it could causes the central bank to "jam on the brakes, pull out liquidity, then you're going to see a huge reaction. And I'm not predicting that, but it's possible they have to do that sometime next year," Dimon said in an interview aired on Tuesday.

Powell has argued that this spike in prices is transitory. But Dimon said that if those hot inflation figures continue into December then U.S. policymakers may have to admit that at least part of the price increases are here to stay.

"The Fed can't always be proactive — I mean, sometimes they're going to have to be reactive."

- Jamie Dimon

Our eye will be at the feds policy indeed. 

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