JPMorgan CEO warns of potential Fed rate hikes in response to persistent US inflation

JPMorgan Chase CEO Jamie Dimon is deeply concerned about the Federal Reserve’s (Fed) monetary policy. Unlike many experts, his worry is not prolonged maintenance of current interest rates but the risk of further hikes. While markets estimate the likelihood of such a scenario at just 20%, Dimon puts it at 40–50%, Reuters reports.

Monetary conditions in the United States have long sparked mixed reactions among experts. There is also no consensus among the central bank’s officials on the matter, the news agency notes. The most heated opposition is between Fed Chair Jerome Powell, who is in no rush to cut borrowing costs, and American President Donald Trump, who insists on loosening the central bank’s policy.

The JPMorgan CEO’s stance could be seen as even more hawkish than that of the Fed Chair. Dimon warns that US interest rates could rise due to persistent inflationary pressures fueled by Trump’s tariff policies, the new administration’s fiscal and migration reforms, and the country’s growing national debt. In his view, markets are underestimating the threat posed by these factors.