JPMorgan CEO Jamie Dimon said in an interview at the JPMorgan Global Markets Conference on Thursday that the market has underestimated how long inflation may last because a series of factors have kept prices rising.
Dimon said: I think underlying inflation may not go away as much as people expect.
I think we have a lot of inflationary factors in front of us that could push inflation a little higher than people expect.
Looking ahead. Dimon cited the green energy transition, infrastructure development and geopolitical remilitarization as worrisome reasons for accelerating price increases.
Despite the current optimism in the market, Dimon has been repeating this point because investors have been trading on the assumption that a fall in inflation will eventually allow interest rates to ease.
Dimon said that in his view, the likelihood of monetary policy remaining unchanged or tightening is higher than most people expect.
Furthermore, he added, the probability of a soft landing should be half what people now expect.
JPMorgan Chase CEO warns: U.S. inflation may last longer and the market is too optimistic about a soft landing
JPMorgan CEO Jamie Dimon said in an interview at the JPMorgan Global Markets Conference on Thursday that the market is underestimating how long inflation is likely to last because a series of factors are keeping prices rising.
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