2024-04-08 23:13:03
The president of JPMorgan Chase bank, the influential Jamie Dimon, fears that inflation in the United States could remain high for longer than expected by the authorities and does not rule out that interest rates will rise again, according to his annual letter to investors published this Monday (8).
The ecological transition, the increase in military spending and the fight against rising healthcare costs “drive spending”, maintained the executive.
“This could make inflation more tenacious and put pressure on rates [de juros do Federal Reserve, o banco central americano] to a level higher than market forecasts”, he warned.
The 68-year-old director maintained that investors are too optimistic about the hypothesis of a fall in inflation without recession or with modest growth.
The bank is evaluating several scenarios, including a rise in interest rates that could reach 8%.
Federal Reserve (Fed) benchmark rates are between 5.25% and 5.50%, the highest in more than 20 years.
The higher the rates, the more expensive credit becomes, so there is a disincentive to consumption and investment, thus reducing pressure on prices.
Dimon, considered one of the most powerful business leaders in the world, insisted in his letter that the United States must reaffirm its position of global leadership based on its military, economic, diplomatic and moral power.
“The United States and the Western free world must not maintain a false sense of security based on the illusion that dictatorships and oppressive nations will not use their economic and military might to achieve their goals, particularly against what they perceive as weak, incompetent Western democracies. and disorganized”, emphasized Dimon.
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