JPMorgan CEO Jamie Dimon issued a warning last Friday about inflation despite recent signs of easing price pressures.
Some progress has been made in reducing inflation, Dimon said, but there are still multiple inflationary forces ahead: huge fiscal deficits, infrastructure needs, trade restructuring and the remilitarization of the world.
Therefore, inflation and interest rates may remain higher than markets expect.
His comments came after data this week showed the monthly inflation rate fell in June for the first time in more than four years, raising the stakes that the Fed may cut interest rates soon.
The Consumer Price Index fell by 0.1% in June compared to May, bringing the 12-month average to 3%, close to its lowest level in more than three years.
Fed Chairman Jerome Powell also expressed concern earlier last week that keeping interest rates too high for too long could endanger economic growth, noting that interest rate cuts could be on the horizon as long as inflation continues to show progress.
As Fed Chairman Powell speaks on Monday in a conversation hosted by the Economic Club of Washington, the focus is on Chairman Powell, who recently indicated that at least one interest rate cut is on the way, and this has led to the rapid pricing of the September cut.
