JPMorgan CEO Jamie Dimon says he expects interest rates to go beyond 5%
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JPMorgan CEO Jamie Dimon speaks at the Boston College Chief Executives Club luncheon, in Boston, Mass., on Nov. 23, 2021.BRIAN SNYDER/Reuters
JPMorgan Chase & Co JPM-N Chief Executive Officer Jamie Dimon expects interest rates to go beyond 5 per cent as inflation remains high, he said in an interview with CNBC on Thursday.
“I actually think rates are probably going to go higher than 5 per cent … there’s a lot of underlying inflation, which won’t go away so quick,” Dimon said.
U.S. Federal Reserve officials in December predicted that the rate, currently in the 4.25 per cent-4.50 per cent range, would rise to just over 5 per cent by the end of 2023 and likely remain there for some time.
Policy-makers at the central bank have said they will continue to push with interest rate hikes to get inflation firmly under control even as the economy shows signs of a slowdown.
U.S. consumer prices fell for the first time in more than two-and-a-half years in December, adding to hopes that inflation is now on a downward trend.
However, Dimon said the recent easing of inflation was coming from temporary factors such as a pullback in oil prices and a slowdown in China due to the pandemic, according to the report.
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