JPMorgan CEO: Inflation May Be Stickier Than People Think, Fed May Raise Rates Further

The CEO of JPMorgan Chase, Jamie Dimon, has warned that ostentation whitethorn beryllium much persistent than galore expect, and the government’s fiscal and monetary stimulus successful the past respective years has been greater than galore realize. Dimon besides expects much involvement complaint hikes from the Fed, stating: “I fishy that they whitethorn not beryllium done … I conscionable deliberation there’s a higher accidental than astir apt different radical think.”

Jamie Dimon Shares Economic Outlook

JPMorgan Chase CEO Jamie Dimon discussed the U.S. economical outlook successful an interrogation with Yahoo Finance Live connected Wednesday aft Fed officials wrapped up their Federal Open Market Committee (FOMC) meeting.

The committee decided to intermission raising involvement rates this month, keeping the people scope for the national funds complaint astatine 5-1/4 to 5-1/2 percent. Regarding the FOMC decision, Dimon said: “I deliberation they’re close to intermission present and spot what happens.” However, the JPMorgan enforcement believes that the cardinal slope whitethorn rise involvement rates further, stating:

I fishy that they whitethorn not beryllium done.

While emphasizing that helium is not making a prediction astir the magnitude of aboriginal complaint hikes, Dimon stated that the Federal Reserve could rise involvement rates by 25, 50, oregon adjacent 75 ground points more. “I conscionable deliberation there’s a higher accidental than astir apt different radical think,” helium stressed.

The Fed explained successful a connection issued aft the FOMC meeting: “Recent indicators suggest that economical enactment expanded astatine a beardown gait successful the 3rd 4th … The U.S. banking strategy is dependable and resilient. Tighter fiscal and recognition conditions for households and businesses are apt to measurement connected economical activity, hiring, and inflation. The grade of these effects remains uncertain. The committee remains highly attentive to ostentation risks.”

Commenting connected the Fed’s statement, the JPMorgan main said:

I deliberation there’s a accidental that ostentation is conscionable a small stickier than radical deliberation and their fiscal and monetary stimulus successful the past respective years is much than radical think. Unemployment is precise low. We’ll see.

In September, Dimon warned that the Fed could raise involvement rates to 7%, perchance pushing the U.S. system into stagflation. In October, helium revealed that helium sees 2 “extraordinary” storm clouds hitting the U.S. economy. “One is the fiscal wealth being spent is truthful big, the largest successful peacetime ever — America and benignant of astir the satellite — with precise precocious deficits and QT we’ve ne'er had,” the enforcement detailed, noting that “The biggest tempest unreality is geopolitical.” He besides warned of “the astir unsafe time the satellite has seen successful decades.”

Do you hold with JPMorgan CEO Jamie Dimon astir the U.S. economy, inflation, and aboriginal Fed complaint hikes? Let america cognize successful the comments conception below.