Despite recent indications that pricing pressures are lessening, Jamie Dimon, CEO of JPMorgan Chase, issued another warning about inflation on Friday.
Along with the bank’s second-quarter results, Dimon released a statement saying, “There has been some progress bringing inflation down, but there are still multiple inflationary forces: large fiscal deficits, infrastructure needs, restructuring of trade, and remilitarization of the world.” As a result, interest rates and inflation may continue to be higher than the market anticipates.
His remarks followed statistics released this week that indicated June’s monthly inflation rate fell for the first time in over four years, a development that stoked speculation that the Federal Reserve may soon lower interest rates.
The 12-month rate was 3%, which is close to its lowest point in more than three years, as a result of a 0.1% decrease in the consumer price index in June from May. The index is a broad indicator of the prices for goods and services throughout the U.S. economy.
Earlier this week, Fed Chairman Jerome Powell voiced worry that keeping interest rates too high for too long may endanger economic development and hinted that rate cuts might be coming soon as long as inflation keeps rising.
Like many other economists, Dimon raised concerns about the growing debt and deficits of the United States. In the fiscal year 2024, the federal government has already spent $855 billion more than it has taken in. The amount that the government spent on deficits in the fiscal year 2023 was $1.7 trillion.
