Jamie Dimon says rates will rise above 5% because there is still 'a lot of underlying inflation' – CNBC

JP Morgan Chase CEO Jamie Dimon With inflation remaining stubbornly high, we believe interest rates could be higher than the Federal Reserve currently anticipates.

“I think rates are probably over 5%,” Dimon said on CNBC’s show.squawk boxThursday at the World Economic Forum in Davos, Switzerland.

To combat soaring prices, the Federal Reserve has raised benchmark interest rates With a target range between 4.25% and 4.5%, Highest level in 15 years. The expected “end-of-life rate,” or the point at which the Fed will end rate hikes, was set by him at 5.1% at its December meeting.

of consumer price indexwhich measures the cost of a broad basket of goods and services, rose 6.5% year-on-year in December, marking the smallest annual increase since October 2021.

Dimon said the recent easing in inflation was due to temporary factors such as lower oil prices and a slowdown in China’s economy due to the pandemic.

Dimon said it benefited from a slowdown in China and a bit lower oil prices. “I think oil and gas prices will probably rise in the next decade…China will no longer be in deflation.”

A series of aggressive interest rate hikes have heightened fears of a US recession. The central bank feels there is room for rate hikes as the labor market and consumers continue to perform well.

JP Morgan chief executive said interest rates could rise to 6% if the U.S. hits a mild recession. He added that predicting a recession is difficult for anyone.

“I know there are recessions, there are ups and downs. rice field.

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