Head of largest U.S. bank sees challenges for the economy and financial regulators.
JPMorgan Chase CEO Jamie Dimon isn’t one to shy away from bold statements.
Dimon has famously called out cryptocurrencies for criticism and in his most recent comments has referred to it as a “pet rock.”
He’s also robustly defended his bank’s continued funding of fossil fuel developments in the face of climate change, telling Congress that stopping such projects “would be the road to hell for America.”
Dimon, has been the CEO of JPMorgan (JPM) – Get Free Report, the largest U.S. bank by assets, for almost two decades. Now he’s making a bold prediction for the U.S. financial world, even as some are projecting the Federal Reserve is nearing a pause in its interest rate hikes.
“I actually think rates will probably go higher than 5%.” Dimon said in an interview from the World Economic Forum in Davos, Switzerland. “That’s my own view because I think there’s a lot of underlying inflation which won’t go away so quick,” he told CNBC.
Dimon cited two factors for the recent declines in inflation. “I think we’ve had the benefit of China slowing down. The benefit of oil prices dropping a little bit.”
However, and perhaps not surprisingly, Dimon sees oil and gas prices rising. “I think oil and gas prices [will] probably go up the next 10 years. We’re not investing enough in oil and gas to actually keep it low,” he said.
In addition “China isn’t going to be deflationary any more.”
All that said, Dimon doesn’t appear too concerned about the U.S. economic outlook. “if we have a mild recession and rates go to 6%, we’re all going to be fine” he said.