Peter Schiff Predicts Skyrockerting Mortgage Rates By Year-End — Flags Fed's Impending Balance Sheet Troubles
Portfolio Pulse from Benzinga Neuro
Economist Peter Schiff predicts a surge in 30-year fixed-rate mortgage rates to 9% by year-end, which could lead to a ballooning of the Federal Reserve's balance sheet due to insolvent banks offloading their mortgage-backed securities onto the Fed. This comes amidst concerns over rising interest rates and yields. JPMorgan Chase & Co.'s CEO, Jamie Dimon, has warned that a rise in Federal Reserve benchmark interest rates to 7% could lead to unprecedented financial stress.
September 27, 2023 | 1:12 am
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JPMorgan Chase & Co. could face financial stress if the Federal Reserve's benchmark interest rates rise to 7%, as warned by CEO Jamie Dimon. The bank could also be affected by the predicted surge in mortgage rates.
The predicted surge in mortgage rates and the potential rise in the Federal Reserve's benchmark interest rates could lead to financial stress for banks, including JPMorgan. This could negatively impact the bank's financial performance and stock price in the short term.
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