JPMorgan Chase CEO Jamie Dimon spoke to CNBC’s Jim Cramer about the state of the U.S. economy and his concerns about inflation. While he noted that the economy is currently strong and consumers have plenty of money to spend, he also expressed concern about the potential for inflation to continue to rise. JPMorgan Chase, Jamie Dimon, inflation, Federal Reserve, US economy, interest rates, recession, consumer spending, jobs, strength, control, sustained downward path, progress, uncertainty.
Dimon stated that he has “all the respect” for Federal Reserve Chair Jerome Powell but that the Fed has lost some control of inflation. He suggested that interest rates may need to remain higher for longer in order to get inflation under control.
Dimon’s comments come on the heels of the release of the minutes from the Fed’s January meeting, which indicated that members remain committed to fighting persistent inflation. The minutes noted that while there has been a reduction in the monthly pace of price increases, more evidence of progress is needed to be confident that inflation is on a sustained downward path.
Despite his concerns about inflation, Dimon did not indicate that he is currently breaking out the recession playbook. He noted that there is always uncertainty in the future but that the U.S. economy is currently doing well.
This is a departure from Dimon’s previous remarks in October, when he predicted that the U.S. economy would likely fall into a recession within six to nine months. In December, he also expressed concern that higher inflation was eroding consumer wealth and could lead to a recession this year.
The Federal Reserve declined to comment on Dimon’s remarks.