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Investing.com – Investment bank chief Jamie Dimon says central bank forecasts 18 months ago were 100% wrong and cautioned against making sweeping economic conclusions. writes Business Insider.
In his opinion, central banks and governments will not be able to cope with the upcoming shocks in the economy. The fact is that forecasters did not observe the rule of caution when preparing reports. Speaking at the Future Investment Initiative summit in Riyadh, he called on governments and central banks to show more humility.
“Prepare for different probabilities, and don’t name just one course of action. I want to point out that the central banks were 100% wrong 18 months ago. I would be quite cautious about what might happen next year.”
According to Dimon, it makes no difference whether the US Federal Reserve raises interest rates by another 25 basis points or not. Since the beginning of last year, it has raised the rate 11 times, and in the near future the market expects a 97% probability that the Fed will not adjust the rate. There is also a 29% chance of a quarter-point increase in December.
Dimon pointed to the pressure of huge budget expenditures, which are greater in peacetime than ever before, so that central banks and governments can cope.
— Materials from Business Insider were used in preparation
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2023-10-25 09:49:00
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