“Damon believes that inflation will not easily fade away. He has previously warned multiple times that inflation may be more stubborn than investors expect, due to factors such as fiscal deficit spending.
Jamie Dimon, CEO of JPMorgan Chase, expressed doubts about the prospect of a "soft landing" for the U.S. economy after the Federal Reserve's first interest rate cut in over four years, and he said he would not hold too much hope for this outcome.
He said at an event on Friday,
"I am more skeptical than others about this. I think the likelihood of a soft landing is low."
"I hope this soft landing is true, but I also have greater doubts about inflation easing so easily. This is not because inflation has not fallen - of course, inflation has indeed fallen, and it may continue to fall."
When asked about the impact of this interest rate cut on the presidential election, Dimon added that this interest rate cut would hardly have any impact on the presidential election.
On Wednesday, the Federal Reserve cut its benchmark interest rate by 50 basis points. Dimon had previously stated that whether the Fed cuts rates by 25 basis points or 50 basis points, it will not be a "earthshattering" event.
Dimon has warned multiple times over the past year that inflation may be more stubborn than expected by investors, citing driving factors such as fiscal deficit spending. In his annual shareholder letter in April, he wrote that JPMorgan Chase was prepared for fluctuations in interest rates within the range of 2% to 8% or higher.
"I don't have high hopes for this (soft landing), we may have already transitioned from low interest rates and low inflation to slightly higher interest rates and inflation. No matter what the future holds, we will deal with it. Economists are used to dealing with these issues, it's not considered a disaster."
Editor/Emily