JPMorgan Chase & Co. chief executive officer Jamie Dimon said he was skeptical about the prospects that the inflation rate in the United States would return to the Federal Reserve’s 2% target.
The head of the largest US financial institution says that the implementation of a positive scenario in the context of an increase in the cost of goods and services in the mentioned country belongs to the category of an unlikely state of affairs due to deficit spending. Also, in the context of explaining his skepticism about the prospects of inflation returning to the target of the central bank of the United States, he drew attention to the global process of remilitarization of the world.
On Wednesday, August 7, during a conversation with media representatives, Jamie Dimon said that there is currently considerable uncertainty about the future of the dynamic of the US economic system. In this context, he focused on the tense situation in the space of geopolitical relations.
Also, during a conversation with media representatives, Jamie Dimon suggested that the central bank of the United States would cut interest rates in the short term. However, he noted that many perceive the easing of the monetary policy of the US financial regulator through the prism of exaggerating the importance of appropriate measures.
It is worth noting that for more than a year Jamie Dimon has been periodically warning that inflation in the space of the United States economic system may be higher than investors’ expectations regarding the dynamic of this indicator. In April, in his annual letter to shareholders, he wrote that the financial institution he heads is ready for borrowing costs in the range of 2% to 8% and even higher. Last month, Jamie Dimon said that Washington had made some progress in countering inflation, but many of the relevant challenges still remain relevant.
Fed Chairman Jerome Powell said last week that the central bank of the United States could start cutting interest rates as early as September. In this context, he mentioned the risks of weakening the labor market. The corresponding concerns intensified when on Friday, August 2, data were published on an unexpected increase in the unemployment rate in the US to 4.3% in July.
Also last week, Jamie Dimon said that the next president of the United States should give the private sector a seat at the table.
