Finance
JPMorgan’s Jamie Dimon warns that inflation and interest rates could remain higher
Jamie Dimon, president and CEO, chairman and CEO JPMorgan Chase, speaks on CNBC’s Squawk Box at the World Economic Forum annual meeting in Davos, Switzerland on January 17, 2024.
Adam Galic | CNBC
JPMorgan Chase CEO Jamie Dimon warned again about inflation on Friday, despite recent signs of easing price pressures.
“Some progress has been made in reducing inflation, but several inflationary forces are still ahead of us: large budget deficits, infrastructure needs, trade restructuring and remilitarization of the world,” Dimon said in a statement jointly with the second minister of the bank’s finances. quarterly results. “Therefore, inflation and interest rates may remain higher than the market expects.”
His comments came after this week’s data showed monthly inflation fell in June for the first time in more than four years, fueling expectations that the Federal Reserve could cut interest rates soon.
The A consumer price indexa broad measure of the cost of goods and services across the U.S. economy, fell 0.1% in June from May, bringing the 12-month interest rate to 3%, around the lowest level in more than three years.
Fed Chairman Jerome Powell expressed concern earlier this week that holding rates steady for too long could jeopardize economic growth, teasing that rate cuts could be on the horizon as long as inflation continues to progress.
Dimon, along with many economists, sounded the alarm about the rapidly growing American debts and deficits. The federal government has so far spent $855 billion more than it collected in the 2024 fiscal year. For the 2023 fiscal year, government deficits were $1.7 trillion.
