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August 07, 2024 at 03:01 PM
What You Need to Know
- The head of JPMorgan has been warning for more than a year that inflation may be stickier than investors expect.
- He also said the bank is prepared for interest rates ranging from 2% to 8% or higher.
- Dimon, 68, has run JPMorgan for more than 18 years.
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said he’s skeptical that inflation will return to the Federal Reserve’s 2% target, citing risks including deficit spending and “remilitarization of the world.”
There’s still a lot of economic uncertainty tied to factors including geopolitics and quantitative tightening, Dimon said Wednesday in a CNBC interview from Kansas City. The central bank will probably cut rates soon, he added, but “I don’t think it matters as much as other people think.”
Dimon has been warning for more than a year that inflation may be stickier than investors expect, and wrote in his annual letter to shareholders in April that JPMorgan is prepared for interest rates ranging from 2% to 8% “or even more.”
He said last month that “there has been some progress bringing inflation down, but there are still multiple inflationary forces in front of us.”
Fed Chair Jerome Powell said last week that the central bank could cut rates as soon as September, citing risks of a weakening labor market. Such concerns were underscored Friday when the July jobs data showed slower hiring and an unexpected climb in the unemployment rate.
