Jamie Dimon warns inflation, interest rates may remain elevated
JPMorgan Chase CEO Jamie Dimon on the Federal Reserve's rate trajectory, 2024 economy, looming bank regulations and artificial intelligence.
JPMorgan Chase CEO Jamie Dimon on Monday warned that excessive government spending in the U.S. may continue to fuel both high inflation and interest rates.
In his annual letter to shareholders, the chief executive of America's largest bank offered his assessment on the state of the U.S. economy, the odds of a soft landing and the outlook for artifical intelligence.
«It is important to note that the economy is being fueled by large amounts of government deficit spending and past stimulus,» Dimon wrote. «There is also a growing need for increased spending as we continue transitioning to a greener economy, restructuring global supply chains, boosting military expenditure and battling rising health care costs.»
«This may lead to stickier inflation and higher rates than markets expect,» he added.
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JPMorgan Chase CEO Jamie Dimon attends a hearing on oversight of Wall Street firms before the Senate Committee on Banking, Housing, and Urban Affairs in Washington, D.C., on Dec. 6, 2023. (Aaron Schwartz/Xinhua via / Getty Images)
Dimon's comments come as Federal Reserve policymakers weigh when to start cutting interest rates amid concerns that progress on inflation has stalled. While inflation has fallen considerably from a peak of 9.1%, progress has largely flatlined since the summer.
Investors have steadily dialed back their expectations as central bank officials signal they are in no rush to cut, and that incoming economic data will guide their decision.
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