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.