JPMorgan CEO Jamie Dimon Warns Against U.S. Inflation, Praises AI
JPMorgan CEO Jamie Dimon warned his fellow shareholders of increased U.S. inflation due to “a growing need for increased spending” in his annual shareholder letter published on Monday.
Covering everything from AI to policy making, Dimon’s letter lauded the U.S. economy for being “resilient” despite an “unsettling landscape,” particularly in the face of growing inflation concerns.
“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 healthcare costs,” the letter read. “This may lead to stickier inflation and higher rates than markets expect.”
The JPMorgan CEO further expressed his disbelief at the odds of a “soft landing,” wherein a central bank is able to decrease inflation without collapsing the economy into a recession.
“These markets seem to be pricing in at a 70% to 80% chance of a soft landing — modest growth along with declining inflation and interest rates,” Dimon said. “I believe the odds are a lot lower than that.”
The JPMorgan CEO’s comments come as broader national discussions on whether or not the Fed may cut interest rates for the third time this year following Friday’s landmark jobs report.
Persistent inflationary worries could damage the crypto sector as increased financial strain forces consumers to make stricter spending choices.
Ironically, the rise in bitcoin and ETH and alts is inflationary as it creates more money-like assets and a strong wealth effect for young people with a high marginal propensity to spend.
And of course the NASDAQ rises in lockstep so the Boomers are happy too.
Both are…
— ʎllǝuuop ʇuǝɹq (@donnelly_brent) March 5, 2024
Despite the public’s
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