Source: Cai Lianshe Author: Xia Junxiong

Jamie Dimon, CEO of JPMorgan, stated on Wednesday (July 17th) that the Federal Reserve should remain patient when deciding on the next interest rate action, in response to the possibility of inflation rising again.

Dimon said in an interview with the media on Wednesday:"Inflation is moving in the right direction, but it would be better if the Federal Reserve could wait a bit longer."

Since July last year, the Federal Reserve has not adjusted its interest rate, and the target range for the federal funds rate has remained at 5.25% to 5.50%, the highest level in more than 20 years.

The Federal Reserve is scheduled to hold its next interest rate meeting from July 30th to 31st. At present, the market is more inclined to expect the decision-makers to continue to wait and see. However, given the recent continuous decline in inflation in the United States, some investors believe the Federal Reserve may cut interest rates for the first time in July.

Most market participants currently believe that the Federal Reserve will start an interest rate cut cycle in September, but Goldman Sachs and Moody's suggest that this time point may be advanced to July.

Several decision-makers, including Federal Reserve Chair Powell, acknowledged that recent inflation data in the United States show progress.

However, Dimon said there is still a risk of rising inflation. "I think there are many reasons why inflation may rise again in the future, including increased government spending, the world's re-militarization, huge investments in green economy, and structural adjustments in trade."

This is not the first time Dimon has made the above remarks. JPMorgan released its second-quarter financial report last week, and Dimon warned in the report that although progress has been made in reducing inflation in the United States, there are still multiple inflation factors, so inflation and interest rates in the United States may remain higher than expected.

Dimon has been the CEO of JPMorgan since 2006. The selection of his successor is an inevitable topic for the 68-year-old. "Any decision will be made by the board of directors, but we have plans for his successor. The board is very familiar with the candidates, and they are all very capable. We are also considering external personnel, but it is most likely to be internal personnel."

Editor/Lambor