Jamie Dimon says inflation is worse than people think, and that the market is too optimistic about a soft landing

• JP Morgan CEO Jamie Dimon told Bloomberg TV that inflation may be higher for longer than people think.

• Dimon said markets are very optimistic about inflation, interest rates and the US economy.

• He added that rates are likely to rise higher than people might think.

Markets are underestimating the likelihood of continued inflation, with a combination of factors working to keep prices on the upside, said JP Morgan CEO Jamie Dimon. Bloomberg TV.

“I think core inflation may not go away the way people expect,” he told the outlet at the JPMorgan Global Markets Conference. “I think there are a lot of inflationary forces ahead that may keep the price a little bit higher than people expect,” he added.

Looking to the future, Dimon cited examples such as the transition to green energy, infrastructure construction, and geopolitical rearmament as troubling sources of accelerating price growth.

Upcoming policy changes could also play a role here: rising trade restrictions or continued fiscal overspending could drive price momentum.

It's a point Dimon keeps repeating despite the market's bullishness, as investors continue to trade on the basis that declining inflation allows interest rates to eventually ease.

For Damon, this is “a lot of happy talk,” he said. In his view, the chances of monetary policy remaining unchanged – or tightening – are higher than most people expect. Moreover, there should be hopes for a soft landing Half of what they arehe added.

But in the latest survey of global fund managers conducted by Bank of America, the positivity shines through. In fact, Tuesday's report marked the highest bout of Investors have been optimistic since late 2022as a result of growing confidence in interest rate cuts this year.

Damon's response continued. in Annual letter to JPMorgan shareholders Last month, he expressed similarly bleak forecasts regarding inflation, interest rates, and the path of the economy. He said at the time that geopolitical tensions were also worrying the bank president.

But more recently, he has offered soothing rhetoric when it comes to at least one global competitor: China. On this front, Dimon said that the United States And it should not be shy about competitive engagement with BeijingDespite the country's growing ties with Russia.

“Sharing is the right thing to do,” he told Bloomberg. “China is not a natural enemy of the United States; they have a lot of their own problems. So, for me, we can work together as best we can.”

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