Finance
JPMorgan's Jamie Dimon downplays Fed rate cuts: 'It's a minor thing'
JPMorgan Chase CEO (JPM) Jamie Dimon is one big Wall Street figure who isn’t that concerned about what the Federal Reserve does at the end of its policy meeting Wednesday.
Whether the central bank cuts its benchmark rate by a smaller 25 basis points or a bigger 50 basis points, “it’s not going to be earth-shattering,” the boss of the biggest US bank said Tuesday at a conference hosted by Georgetown University’s Psaros Center for Financial Markets and Policy. “It doesn’t mean that much.”
When the Fed lowers or raises rates, he added, “it’s a minor thing,” explaining that “underneath that, there’s a real economy.”
Dimon, though, did say he supports the Fed’s easing of monetary policy and the central bank’s chairman, Jerome Powell.
“I think they need to do it,” he said. “And I think that Jay Powell does do a great job.”
Dimon has been warning for some time that the US economy could be more vulnerable than some market observers think, having voiced concerns about a potential stagflationary environment where inflation remains elevated and some rates surge to 7% as the labor market weakens.
“I am not sure if the world is prepared for 7%,” he said at a conference in India a year ago.
As recently as August, he said he was still “a little bit skeptical” that the inflation rate would fall back to the Fed’s 2% target. He also said then that the odds of a recession still happening were better than the chance of a no recession.
The coming rate cuts, however, will have an effect on the bank.
Last week, JPMorgan COO Daniel Pinto alarmed investors when he said that the consensus view among analysts that the bank would earn $94 billion in 2025 was “a bit too optimistic” due partly to the effect of falling rates.
While admitting the bank’s financial projections for next year weren’t complete, Pinto said JPMorgan was guiding for expenses to run higher in light of inflation and some other investments while its biggest profit driver, net interest income, looked to be lower due to falling rates.
Net interest income measures the difference between what banks earn on their assets (loans and securities) and pay out on their deposits.
Read more: What a Fed rate cut would mean for bank accounts, CDs, loans, and credit cards
JPMorgan’s stock fell the most intraday since 2020 following Pinto’s comments. It was also down slightly on Wednesday.
Year to date, the stock is still up over 20%.
While speaking Tuesday, Dimon also did not hold back when blasting bank regulators over a new set of capital rules designed to protect lenders against future losses, even after a top Fed official last week scaled back a new version of those rules.
Big banks like JPMorgan and Bank of America (BAC) would now have to increase their capital levels by 9% in aggregate. That is down by half from the original plan from more than a year ago, which set the capital increase to around 19% for those institutions.
“It’s been going for 10 years. I would have got it done in six months. I find it unbelievable,” Dimon said.
But big banks are still waiting until the Fed releases the full proposal, which is expected to feature hundreds of pages of revisions to the original 1,000-page document along with a quantitative impact assessment.
“I don’t care about relief. I want the work to be done properly. That’s it, an honest assessment, and even after that, I’d say 10% more capital would be fine with me,” Dimon added.
Read more about the long-awaited Fed interest rate cut:
David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance.
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Harley-Davidson’s new CEO wants to transform how people think about the iconic motorcycle brand, so the company is trying something different.
This week, Harley announced a new strategy that focuses on lower-priced bikes, rather than relying on older, more affluent customers to buy its higher-margin touring models.
“Back to the Bricks builds on our core strengths and competitive advantages, harnessing the passion of our riders to deliver profitable growth for the Company and both our dealers and shareholders,” Harley CEO Artie Starrs said this week. “As we drive towards this new phase of growth, we remain committed to the craftsmanship and dedication that define our brand.”
Entry-level Harley-Davidsons cost about $13,000, while the higher-end Adventure Touring models average about $23,250, and the Premium Range &CVO models cost about $38,500, according to Reuters.
Harley’s new strategy targets a core profit of over $350 million from its motorcycle business by 2027 and over $150 million in cost reductions.
To kick off the new strategy, Harley is introducing Sprint, a new entry-level model powered by a smaller 440cc engine, later in the year.
What is Harley-Davidson’s “Back to the Bricks” strategy?
Harley’s new strategy relies on more than just pushing buyers toward cheaper vehicles to increase volume. The 123-year-old company has a set of five pillars on which it is building its future.
Harley-Davidson “Back to the Bricks” 5-point plan
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Deep appreciation of Harley-Davidson’s competitive advantages and legacy: The Company’s iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth.
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Renewed commitment to exclusive dealer network to drive enterprise profitability: Harley-Davidson’s dealers are a competitive advantage. The Company is planning actions to enable dealers to double profitability in 2026 and then double it again by 2029.
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Immediate actions to recapture share in areas where Harley-Davidson has right to win: Harley-Davidson has strong legacy equity in existing markets including new motorcycles, used motorcycles, Parts & Accessories, and Apparel & Licensing. The Company’s new strategy is focused on positioning the Company to regain share and drive meaningful volume growth in categories where it benefits from credibility, scale, and deep rider connection.
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Strong financial position with a path to stronger free cash flow and EBITDA margin: Cost and restructuring actions already underway support a path to stronger free cash flow and EBITDA margin over time.
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Bolstered management team with balance of fresh perspectives and institutional knowledge: Harley-Davidson has made a number of leadership appointments that support the Company as it leverages its innate strengths.
Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
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