Jamie Dimon, Chief Executive Officer (CEO) of JPMorgan Chase & Co., cautioned against declaring victory against inflation too early, warning the Federal Reserve could raise interest rates above the 5% mark if higher prices ended up "sticky," reported Reuters.
That said, Reuters interviews JP Morgan’s Dimon and published his outlook on multiple issues ranging from the Federal Reserve (Fed) to credit card fees.
Key comments
People should take a deep breath on this one before they declare victory because a month’s number looked good.
It’s perfectly reasonable for the Fed to go to 5% and wait a while but if inflation comes down to 3.5% or 4% and stays there, you may have to go higher than 5% and that could affect short rates, longer rates.
Stricter regulation of credit card fees could prompt lenders to extend less credit.
A default on U.S. debt - a prospect the country faces unless its debt ceiling is raised - would be potentially ‘catastrophic’.
Also read: US Dollar Index eyes three-week uptrend as Fed hawks ride on higher inflation expectations
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