Comments from the JPMorgan CEO
- Bank is over-reserved for base case economic scenario
- Doesn’t see ‘earth shattering’ change to office work
- Stimulus needed for unemployed and small business
- Economic outlook is still ‘a little murky’
Who doesn’t want to lend the government money at 0.91% for 10 years at a time the Fed is dead-set on inflation and deficits are enormous?
Meanwhile, the consensus on the large bank reserves being released is that it will boost lending but I think that’s fanciful. For anyone creditworthy, money is cheap and easy. Dropping those reserves would be good for JPMorgan shareholders but I don’t know if there’s any significant economic knock-on effect.