JPMorgan’s CEO says Reuters could lead to more than four rate hikes in 2022
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NEW YORK (Reuters) – JPMorgan Chase & Co CEO Jamie Dimon said on Monday that the economy was generating so much inflation that the Federal Reserve would have to raise short-term interest rates more than fourfold this year.
Speaking to CNBC, Dimon said: “Inflation is likely to be worse than people think. I, personally, would be surprised if there were only four increases this year. Four would be very easy for economies to absorb.”
Dimon told JPMorgan (NYSE 🙂 and other Wall Street banks that the Federal Reserve expects interest rates to rise fourfold this year, at a faster rate than previously forecast.
Citing signs that the economy is strong, Dimon said consumers have never been in a better financial situation, with high current account balances, rising debt payments and rising home values.
But he also warned that volatility in financial markets will increase as the Fed raises rates.
“If we’re lucky, the Fed will slow things down and we’ll have a smooth landing,” he said.
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