Despite recent signs of relief in US inflation, JPMorgan CEO Damon still insists on his previous views and issued warnings on inflation and interest rates again on Friday.

On Friday, JPMorgan released its second-quarter financial report, and Damon also issued a statement at the same time:

While US inflation has cooled down somewhat, there are still multiple forces driving inflation in front of us: huge fiscal deficits, infrastructure demand, trade restructuring, and global re-militarization. Therefore, US inflation and interest rates may continue to be higher than market expectations.

Together with many economists, Damon has warned of the surge in US debt and deficits. The US federal government's spending in the current fiscal year to 2024 is $855 billion more than its revenue. In fiscal year 2023, the US government's deficit spending was $1.7 trillion.

This is not the first time Damon has warned about the future inflation situation in the US. In April of this year, he said that US inflation and interest rates may continue to be higher than market expectations, and has prepared for the Fed's highest interest rate hike to 8%. At the end of May, he said that US inflation and interest rates will be higher, and the current price will not repurchase company stocks.

On Friday, several large US banks announced their financial reports. JPMorgan performed the best, with its stock price hitting a new high, while Wells Fargo and Citibank's stock prices fell.

This week, the US announced two major inflation data points, the CPI and PPI. The US June CPI turned negative for the first time in four years on a month-on-month basis, and core CPI year-on-year growth hit a new low in more than three years, but PPI rebounded more than expected, with a year-on-year growth of 2.6%, and core PPI increased by 3%, both of which are the highest since March last year, and last month's PPI data was significantly revised upwards.

Earlier this week, Fed Chairman Powell expressed concern that persistently high interest rates could endanger economic growth and suggested that a rate cut may be coming if inflation continues to make progress.

Edited by Jeffrey