Jpmorgan Chase CEO Jamie Dimon, Jamie Dimon, an US CEO, has increased attention against the problems that may occur in the US’s Treasury market of approximately $ 30 trillion. Dimon, the existing rules and regulations that may occur in the light of the problems, as before in similar situations, the Central Bank can lead to the activation, he said. This means rise for crypto currencies.
Jpmorgan warning
Increased bond returns and rising market volatility attract the attention of investors. The trade tensions between the US and China affect the current situation of the market. In this process, Dimon’s warnings were suggested that “a confusion arising from the rules” in the treasury market.
Jamie Dimon said, “There will be a turmoil in the treasury markets due to rules and arrangements,” Jamie Dimon said.
Regulation and the role of institutions
Existing regulations limit the entry of banks to the market as a buyer when liquidity decreases. The similar situation in 2020 caused the Central Bank to launch a trillion dollar bond purchase program. Dimon proposed regulation changes to strengthen the intermediary role of banks to prevent such situations from being repeated.
Suggestions include the exemption from the leverage ratio calculations of Treasury bonds. In this way, it is aimed that institutions can buy state borrowing securities without being attached to capital buffers.
“If the rules are not changed, the Central Bank will have to intervene if the rules are not changed, which is an unwanted policy move.”
The Treasury market plays an important role in the global financial system. The impact of this market is observed in determining many financial products from Mortgage interest rates to corporate bond returns. If the market is blocked, the risks of economic fluctuation and uncertainty may increase.
In addition, the Central Bank’s intervention, alternative investment instruments can bring with it is suggested. In 2020, after the expanding policies of the Central Bank, interest in crypto currencies increased and prices rose rapidly.
Dimon’s statements are among the developments that need to be followed carefully in terms of market arrangements and economic stability. The effects of the issue on international financial markets seem to be closely related to new decisions of regulatory institutions.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
