Interest Rates Will Rise Above 5% Says JPMorgan CEO Jamie Dimon

Vignesh Karunanidhi
Interest Rates Will Rise Above 5%, Says JPMorgan CEO Jamie Dimon
Source: Fortune

Jamie Dimon, the CEO of JPMorgan, recently conveyed his beliefs about inflation and interest rates at the World Economic Forum in Davos, Switzerland. Speaking on CNBC’s “Squawk Box”, Dimon said that he believes interest rates could go higher in the near future.

Dimon also mentioned that interest rates are probably going to go higher than 5% because he believes that there is a lot of underlying inflation that is not going to go away quickly.

Read more: Ripple’s Brad Garlinghouse Says the SEC’s Actions Have Been “Embarrassing”

“I actually think rates are probably going to go higher than 5% … because I think there’s a lot of underlying inflation, which won’t go away so quick,” said Dimon.

Fed has been raising interest rates to beat soaring inflation

The rising inflation has been a worrisome factor, not just for the US, but for global nations too. Central banks around the world have been trying their best to control soaring inflation and avoid the possibility of a recession.

The Federal Reserve has been raising interest rates to bring inflation under control. The Fed raised interest rates by 50 BPS on December 15, 2022. Dimon also stated that the recent cool down of inflation is basically due to the pullback of oil prices due to the COVID situation in China.

Read more: US DOJ Announces International Cryptocurrency Enforcement Action Against Bitzlato

Source: Business Today

“We’ve had the benefit of China’s slowing down, the benefit of oil prices dropping a little bit. I think oil-gas prices probably go up the next 10 years … China isn’t going to be deflationary anymore,” said Dimon.

The aggressive economic tightening in the US has also been one of the worrisome factors. However, the latest data from December’s consumer price index has shown that the US inflation rate has fallen to 6.5%. Slowing inflation will almost certainly entice the Fed to lower interest rates.