Jamie Dimon, CEO of JPMorgan Chase, said in an interview that the market is underestimating how long inflation may last because a range of factors will keep prices rising.
“I think underlying inflation may not go away as people expect,” he told the JPMorgan Global Markets Conference. He added: “I think we have a lot of inflationary factors in front of us that could keep inflation a little bit higher than people expect.”
Looking ahead, Dimon cited the green energy transition, infrastructure construction and geopolitical militarization as worrisome reasons for accelerating price increases.
Possible upcoming policy changes in the United States also play a role in this regard, with increasing trade restrictions or continued fiscal overspending potentially driving prices higher.
Dimon has been reiterating this point despite the general optimism in the market. Investors are front-loading bets that a potential retreat in inflation will eventually lead the Federal Reserve to cut interest rates.
For Dimon, the officials’ speeches were “a lot of good conversation,” he said. In his view, the odds that monetary policy remains unchanged or tightened are higher than most people expect. Moreover, he added, the odds of a soft landing should be half as likely as the market now expects.
But positivity does radiate in Bank of America’s latest Global Fund Manager Survey. In fact, Tuesday’s report marked the most bullish sentiment among investors since late 2022, fueled by growing confidence in rate cuts this year.
Dimon has been vocal against what he sees as excessive market optimism. He struck a similarly downbeat note about inflation, interest rates and the economy in his annual letter to JPMorgan shareholders last month. He said then that geopolitical tensions also worried the bank’s chief.
Recently, he has made calm remarks about so-called global competitors. Dimon believes that the United States should not shy away from ties with China. He said: "It is the right thing to do to maintain contact. China is not the natural enemy of the United States. They have a lot of their own problems to solve. So, for me, we can cooperate as much as we can."
The article is forwarded from: Jinshi Data
