Breaking News

German November IFO Confidence at 104.7; Median Forecast 103.0
Tweet TWEET

Dimon Sees ‘Scary’ World as Interest Rates Return to Normal

Photographer: Chris Ratcliffe/Bloomberg

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said, “As we go back to normal, its going to be scary, and its going to be kind of volatile.” Close

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said, “As we go back to... Read More

Close
Open
Photographer: Chris Ratcliffe/Bloomberg

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said, “As we go back to normal, its going to be scary, and its going to be kind of volatile.”

Global markets will face increased volatility as central banks bring interest rates back to normal levels, JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon said.

“We should all hope for a normalization of interest rates -- that’s a good thing,” Dimon said today during a panel discussion at the Fortune Global Forum in Chengdu, China. “As we go back to normal, it's going to be scary, and it's going to be kind of volatile.”

Investors have been encouraged to buy riskier assets as global central banks unleashed unprecedented monetary stimulus after the financial crisis of 2008. Concern that the policies would be reviewed grew last month following comments from Federal Reserve Chairman Ben S. Bernanke.

Price swings across assets and around the world are holding below historical averages. Levels of investor concern in equities, commodities, bonds and currencies, as measured by Bank of America Corp.’s Market Risk index of cross-asset volatility, are below readings from about 75 percent of days since 2000, according to data compiled by Bloomberg.

Daily fluctuations have widened in the past month amid speculation the Fed might consider curtailing its quantitative easing program of stimulus and reports on Chinese and American manufacturing trailed estimates.

“I am going to be looking at every word the Fed says,” Dimon said.

To contact Bloomberg News staff for this story: Dexter Roberts in Beijing at droberts34@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.