Despite recent indications of a relaxation in price pressures, Jamie Dimon, CEO of JPMorgan Chase, issued another caution on Friday regarding inflation.
In a statement released with the bank’s second-quarter earnings, Dimon stated, “There has been some progress bringing inflation down, but there are still multiple inflationary forces in front of us:large fiscal deficits, infrastructure needs, trade restructuring, and remilitarization of the world.””Inflation and interest rates may therefore continue to be higher than the market anticipates.”
The figures released this week indicated that June had the lowest monthly inflation rate in almost four years, which stoked speculation that the Federal Reserve may soon lower interest rates.
With a 0.1% decrease from May, the 12-month rate was at 3%, which is close to its lowest point in over three years. The CPI, a broad indicator of prices for goods and services across the U.S. economy, increased 0.1% in June.
Interest rate reductions may be imminent as long as inflation keeps improving, as indicated by Fed Chairman Jerome Powell’s earlier this week expression of concern that keeping rates too high for too long could endanger economic development.
Source (CNBC)
