JPMorgan's Dimon endorses trade deal, tackles central bank measures

By Pete Schroeder WASHINGTON (Reuters) - The head of the Business Roundtable trade group of top U.S. chief executives said on Wednesday that he endorses the revised U.S.-Mexico-Canada (USMCA) trade deal after negotiators brought the hard-won agreement across the finishing line on Tuesday. Approval of the deal by Jamie Dimon, chief executive at JPMorgan and head of the Business Roundtable, comes a day after the leaders of the three countries signed the overhaul of the 1994 North American Free Trade Agreement (NAFTA), which labour unions, industry groups, lawmakers and even environmental groups fought hard to improve.

Reuters December 12, 2019 00:07:00 IST
JPMorgan's Dimon endorses trade deal, tackles central bank measures

JPMorgans Dimon endorses trade deal tackles central bank measures

By Pete Schroeder

WASHINGTON (Reuters) - The head of the Business Roundtable trade group of top U.S. chief executives said on Wednesday that he endorses the revised U.S.-Mexico-Canada (USMCA) trade deal after negotiators brought the hard-won agreement across the finishing line on Tuesday.

Approval of the deal by Jamie Dimon, chief executive at JPMorgan and head of the Business Roundtable, comes a day after the leaders of the three countries signed the overhaul of the 1994 North American Free Trade Agreement (NAFTA), which labour unions, industry groups, lawmakers and even environmental groups fought hard to improve.

During the quarterly meeting in Washington, Dimon added that the series of interest rate cuts by the Federal Reserve does help the economy "a little bit" but "not as much as people expect."

Dimon again pushed the central bank to reconsider its liquidity rules for banks after a fall rate spike in overnight funding markets, warning the issues seen in the "repo" market could spill over into other financial markets in a weaker economy.

"They should look at recalibrating all the rules and regulations that do affect the liquidity in the market. This is a minor one, the repo market. But it would affect other markets, and it could, that wouldn’t be so minor," he said.

He also dismissed criticisms that Wall Street may be seizing on financial market issues to push for easier rules overall.

"It’s not to help the banks. JPMorgan will be fine whether they fix it or not," he said.

Ahead of fresh U.S. tariffs on Chinese imports that are due to kick in at the end of the week, Dimon said he expects phase-one talks of a trade deal between the Washington and Beijing to be finalised, adding that not doing so would be "negative" for markets.

Dimon further said the Fed is being "responsive" to the issues in the repo market, which underpins much of the U.S. financial system, helping ensure banks have liquidity to meet their daily operational needs.

However, he added that the current policy of providing temporary support to the market is insufficient.

"I don’t think they’ve fixed it so much as put a Band-Aid on it everyday. But they’re aware of it."

(Reporting by Pete Schroeder; Writing by Katanga Johnson, Chizu Nomiyama and Nick Macfie)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

As pandemic worsens, Wisconsin governor orders strict mask mandate
World

As pandemic worsens, Wisconsin governor orders strict mask mandate

By Brendan O'Brien and Maria Caspani (Reuters) - Wisconsin's governor issued an emergency health order on Friday requiring face masks indoors except at home, a move aimed at slowing a surge in coronavirus infections that is pushing hospitals to the limits of their capacity.

Iran set to tighten COVID-19 restrictions as deaths, cases near record
World

Iran set to tighten COVID-19 restrictions as deaths, cases near record

DUBAI (Reuters) - Iran will impose tougher restrictions nationwide from Saturday as the Middle East country hardest hit by the novel coronavirus battles a third wave of infections. The toughest measures, under which non-essential businesses and services are to close, will be imposed in the capital Tehran and about 160 other high risk "red" cities and towns, state media said on Friday.

Georgia pours cold water on Trump bid to overturn Biden win
World

Georgia pours cold water on Trump bid to overturn Biden win

By Trevor Hunnicutt and Joseph Ax (Reuters) - President Donald Trump's desperate bid to overturn the Nov. 3 election result was dealt another blow on Friday after it was announced he had lost Georgia, while the winner, President-elect Joe Biden, filled more jobs in his incoming U.S. administration