Jamie Dimon, President and CEO, Chairman and CEO of JPMorgan Chase, speaks on CNBC's Squawk Box during the World Economic Forum Annual Meeting in Davos, Switzerland on January 17, 2024.
Adam Gallici | CNBC
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon on Friday issued a new warning about inflation, despite recent signs that price pressures have eased.
“While we have made some progress in reducing inflation, multiple drivers of inflation remain, including large budget deficits, infrastructure needs, trade reorganization, and global rearmament,” Dimon said in a statement on the Fed's second-quarter earnings call. “As a result, inflation and interest rates may remain higher than markets expect.”
His comments came after data released this week showed monthly inflation fell to the first rate in more than four years in June, raising hopes the Federal Reserve may soon cut interest rates.
The Consumer Price Index, a broad measure of the cost of goods and services across the U.S. economy, fell 0.1% in June from May, bringing the 12-month increase to 3%, the lowest level in more than three years.
Federal Reserve Chairman Jerome Powell expressed concern earlier this week that keeping interest rates high for a long period of time could jeopardize economic growth, and suggested that interest rate cuts could be on the horizon as long as inflation continues to improve.
Dimon, along with many economists, has sounded the alarm about the skyrocketing U.S. debt and budget deficit, with the federal government spending $855 billion more in fiscal year 2024 than it has taken in so far. The government's budget deficit for fiscal year 2023 is $1.7 trillion.