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Jamie Dimon warns that the Fed could be forced to move sharply next year

Jamie Dimon, CEO of JP Morgan, is paying attention to the launch of the new French headquarters of JP Morgan Bank in the United States on June 29, 2021 in Paris.

Michelle Euler | AFP | Getty Images

JP Morgan Chase CEO Jamie Dimon Warned investors Federal Reserve Despite best efforts to alleviate inflation and interest rate concerns, next year may still be forced into sharp policy moves.

Federal Reserve Board Jerome Powell Central banks have already suggested that they may begin dialing back to pandemic monetary stimulus by the end of this year. He will outline details later Wednesday at the end of the Fed’s two-day policy meeting. The US central bank will also release the long-awaited inflation and interest rate forecasts.

Dimon told CNBC-TV18 that if the US continues to rise in inflation over the next few months, central banks could be forced to act swiftly.

“If inflation is too high and the Fed has to go through a more traditional Mad Men economy, such as jamming brakes and pulling liquidity, there will be a big reaction. It’s unpredictable, but possible. I have to do that sometime next year. “

“The Fed isn’t always aggressive, which means they will sometimes have to be responsive.”

Maximum uncertainty of Federal Reserve System It was an inflationary road. According to the latest data, US consumer prices rose 5.3% in the year to August, down slightly from July’s 13-year high of 5.4%.

Powell argues that this price surge is temporary. But if these high inflation rates continue until December, US policymakers may have to admit that at least some of the price increases remain here, Dimon said.

“I doubt [come] In December, people would say it’s all temporary when it’s been going on for quite some time now, “he told CNBC-TV18, but global growth is healthy while inflation is high. He added that concerns would be subdued if continued.

“Inflation seems to me to be temporary and non-temporary. It’s not a disaster,” he added.

Jamie Dimon warns that the Fed could be forced to move sharply next year

Source link Jamie Dimon warns that the Fed could be forced to move sharply next year

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