JPMorgan's No. 1 reacts to Fed plan

According to JPMorgan CEO Jamie Dimon, the tightening capital rules will reduce the appetite of US banks for housing and SME loans. The Fed plan, which will tighten capital rules in the banking sector, was met with a quick reaction from Wall Street. JPMorgan CEO Jamie Dimon stated that the plan, which includes stricter capital rules, was “very disappointing.” Speaking in a CNBC interview, Dimon said, “We will comply with these rules. But I don’t think it’s the right thing for America.” Dimon argued that the rules will make it harder to provide housing and SME loans. According to the plan prepared by the Fed, the deposit insurance agency FDIC and the banking supervisory agency OCC, the largest Wall Street banks will have to increase their capital buffers by 19 percent. Regarding the US economy in the interview, Dimon said, “I don’t know if there will be a soft or hard landing. Geopolitical tensions are more concerning to me.” According to Dimon, the Fed may increase interest rates a little more. The Fed's plan The US central bank, the Fed, reported in the second quarter that banks were putting tighter conditions on loans and that weak demand for loans continued. The Fed, which published its survey of banks on Monday, stated that the percentage of banks that were tightening conditions on commercial loans for medium and large businesses increased to 50.8 percent. This rate was at 46 percent in the first quarter. Although the percentage of banks reporting weaker demand for commercial loans decreased from 55.6 percent to 51.6 percent, it pointed to ongoing weak demand.