It is clear that the Federal Reserve will continue raising interest rates to fight inflation. The Consumer Price Index last week showed that the annual inflation rate was 8.3%.
Jamie Dimon, CEO of JPMorgan Chase, and other Wall Street CEOs presented testimony before Congress on Thursday. Dimon has another method to fight inflation. Perhaps Congress should listen to career politicians instead of listening to successful CEOs.
Senator John Kennedy (R.-LA) spoke to the panelists.
I don’t like to brag about expensive places I have been to, but I did go to the grocery store the night before. The American people are being sucked under the weight of inflation like a fish.
He asked Wall Street CEOs to answer:
“Now that we know the actions of the Federal Reserve on the monetary side, I would like to ask you your thoughts on what we should do on the fiscal side (we mean the federal government).
Dimon replied:
We hear nothing but the Biden administration claiming that the “Inflation Reduction Act”, which will cost billions, will lower inflation.
Kennedy asked Dimon, continuing, if the government should “get off the back of American people in terms regulation,” and Dimon said:
Dimon pointed out that the federal government should consider taking steps to increase the supply side. These include taxation, regulation and immigration, as well as infrastructure and health care. Dimon concluded his remarks by saying that “if you do some of these things, you can help grow the economy through its inflation.”
Dimon stated that rather than tax cuts, taxation should be adjusted to stimulate more growth.
Senator Elizabeth Warren (D.MA) also received an apology from Dimon. Warren asked Dimon questions during the Senate hearing:
Dimon was told by her that she didn’t receive any information from her. Is it because you don’t keep track of the fraudulent Zelle transactions reported by your customers? Is it because you keep track of fraudulent transactions and know the exact number?
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Dimon responded, “I deeply regret if we haven’t given you the numbers that you requested.” He said that there is only a small amount of fraud in the service. Warren asked Dimon for more details and Dimon promised to send them to Warren by the end.
“Terrific,” Warren said. “We’ll get there by the end of today once nobody’s around to discuss it.”
The hearing highlighted the fact that Dimon and other successful CEOs should be heard by the government because they clearly have not succeeded in what they tried for the past two years.
