JPMorgan CEO Cautions Interest Rates Could Stay High Due to Inflation and Spending
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JPMorgan Chase CEO Jamie Dimon warned that interest rates may remain higher than expected due to sticky inflation and high government spending.
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Dimon cited continued high deficit spending by the U.S. government as a factor that could keep inflation above the Fed's 2% target level.
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He also pointed to potential supply chain disruptions from the wars in Ukraine and the Middle East as threats to energy and food prices.
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Meanwhile, stock markets are celebrating the expected end of the Fed’s rate hikes, pricing in rate cuts in 2023-2024.
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Dimon's warnings come as banks report mixed Q4 earnings, with shares of JPMorgan and Citi up while BofA and Wells Fargo slipped.