Jamie Dimon Warns on Inflation and Interest Rates

Jamie Dimon, JPMorgan Chase’s CEO, is urging caution on inflation and interest rates, even as big US banks post strong earnings, according to a new report from the New York Post.

His view offers a reality check amid recent positive economic news.

“Inflation and interest rates may stay higher than the market expects,” Dimon said.

He pointed to ongoing issues like big government deficits, needed infrastructure spending, changes in global trade, and increased military spending worldwide.

This warning comes as many hope for lower interest rates soon.

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Inflation did slow, according to the government, in June for the first time in four years.

The consumer price index, which tracks the cost of goods and services, rose just 3% compared to last year – the slowest increase in three years.

Federal Reserve Chair Jerome Powell has said the Fed will cut rates when the economy is ready, no matter what’s happening with the upcoming election.

But he’s also said he needs more proof that inflation is truly cooling off before making any moves.

Despite these economic question marks, JPMorgan Chase and two other major US banks beat profit and revenue expectations for the second quarter.

JPMorgan’s earnings per share hit $4.26, topping the $4.19 analysts expected. The bank’s revenue jumped 20% to $50.99 billion, also beating forecasts.

A big boost came from JPMorgan’s $2.3 billion in investment banking fees. However, the bank’s stock dipped 1% early Friday, even though it’s up about 20% this year.

Dimon isn’t just worried about the US economy.

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He called the global political situation “complex and potentially the most dangerous since World War II,” though he admitted it’s hard to know how this might affect the world economy.