Dhaka, Bangladesh
JPMorgan Chase CEO sees further hit from lower interest rates

JPMorgan Chase CEO sees further hit from lower interest rates

NEW YORK, Sept 11: A weakening outlook for interest rateswill dent JPMorgan Chase's profits somewhat in 2019, prompting the bank toplan in case rates fall even further than expected, Chief Executive JamieDimon said Tuesday. Dimon said he still does not expect zero interest rates in the UnitedStates, even as he signaled a further drop in net interest income in 2019after slashing its forecast in July. The US central bank cut interest rates in late July to 2.0-2.25 percent andis expected to cut again later this month, a major shift from a year ago whenthe Fed was raising interest rates. "I don't think we'll have zero rates in the United States," Dimon said at afinancial conference. "We were thinking about how to be prepared for it, justin the normal course of risk management."Possible responses to such a scenario include cost-cutting, as well ascharging consumers account fees, Dimon said. The bank now expects full-year net interest income of around $57 million,down from the prior $57.5 million forecast. The forecast earlier in the yearhad been $58 billion. Dimon offered a mixed outlook on the US economy, describing consumer andsmall business confidence as strong, but rued a demise in business confidencefrom the "best ever" to near the 50th percentile.Dimon cited a variety of headwinds including Brexit and Hong Kong butfingered trade uncertainty as the most significant factor weighing on capitalspending. "It's possible that you just kind of have a slower economy," Dimon said.Dimon's comments were broadly consistent with other executives who spoke atthe conference, including Citigroup Chief Financial Officer Mark Mason, whodescribed consumers as "pretty healthy" but businesses as more cautious."There are a number of factors out there that are creating uncertaintywithout questions, the tensions going on with trade being a major factor,"Mason said. "There tends to be a cautious tone."

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