2024-04-16 11:42:14
The influential businessman Jamie Dimonbank president inflation-remains-a-threat/” title=”For JPMorgan president, inflation remains a threat”>JPMorgan Chase, fears that inflation in USA may remain high for longer than the authorities expected and does not rule out that interest rates will rise again, according to its annual letter to investors published yesterday.
The ecological transition, the increase in military expenses and the fight against rising health costs “boost expenses,” the executive said.
“That could make inflation more tenacious and push (Federal Reserve interest) rates higher than market forecasts,” he warned.
The director of 68 years old held that investors are too optimistic about the hypothesis of a decline in inflation without recession or with modest growth.
The bank evaluates several scenarios, including a rise in interest rates, up to a high 8%. The reference rates of the Fed are located between 5.25% y 5.50%, the highest in more than 20 years.
The higher the rates, the more expensive the credit, therefore consumption and investment are discouraged, thus lowering pressures on prices.
Dimon, considered one of the most powerful company directors in the world, insisted in his letter that the United States must reaffirm its position of world leader based on its military, economic, diplomatic and moral power.
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2024-04-16 11:42:14