Global investment firm JPMorgan Chase & Co. has kept as much as $500 billion cash in its reserves in the belief that inflation could be more than transitory, according to CNBC.
- Longtime Chief Executive Jamie Dimon said the firm has been stockpiling more and more cash as inflation could possibly push the Federal Reserve to raise rates.
- Dimon said the bank is currently awash with cash and will be patient and prepared for investment opportunities. He expects the inflation uptrend to continue and with it higher rates.
- The stockpiling accounts for about half of the expected decrease in net interest income in 2021 at $52.5 billion versus the $55 billion disclosed in February.
JPMorgan’s You Invest service has accumulated $50 billion in assets. JPM is down 1.36%.