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JPMorgan Shifts $350 Billion to Treasuries Amid Rate Cuts

12/18/2025

36 3 Full Breakdown

Summary

Story summary

JPMorgan Chase & Co. withdrew $350 billion from its Federal Reserve account since 2023 and shifted into U.S. Treasuries to hedge against rate cuts.
Data show cash deposits fell from $409 billion at end-2023 to $63 billion by Q3 2025, while Treasury holdings rose from $231 billion to $450 billion.
The Federal Reserve cut its benchmark rate to a three-year low, with 2026 reductions discussed, underscoring JPMorgan Chase & Co.'s influence.

History

Historical Context

The 2008 financial crisis, triggered by the collapse of Lehman Brothers on September 15, led the Federal Reserve to cut interest rates to near zero to stabilize the economy. This unprecedented action prompted banks like JPMorgan Chase to adjust their strategies, including withdrawing $350 billion from the Fed, reflecting a shift towards safer investments amid ongoing economic uncertainty.

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Story summary

JPMorgan Chase & Co. withdrew $350 billion from its Federal Reserve account since 2023 and shifted into U.S. Treasuries to hedge against rate cuts.
Data show cash deposits fell from $409 billion at end-2023 to $63 billion by Q3 2025, while Treasury holdings rose from $231 billion to $450 billion.
The Federal Reserve cut its benchmark rate to a three-year low, with 2026 reductions discussed, underscoring JPMorgan Chase & Co.'s influence.

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