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Learn moreJPMorgan Chase (JPM) CEO Jamie Dimon said Wednesday he still isn't convinced the problem of high inflation has been defeated, shortly after the Federal Reserve raised interest rates and signaled borrowing costs could rise again.
"I'm sympathetic to those who pay a higher price, but it's not clear to me it's over yet. It's not clear to me we've slayed inflation," Dimon told Yahoo Finance in an interview.
US stocks slipped after the Federal Reserve raised interest rates by 25 basis points and policymakers projected at least one more rate hike in 2026. Meanwhile, long-dated bond yields rose, with the 10-year yield (^TNX) topping 5% once again this week.
The longtime CEO of the nation's biggest bank has warned for years that inflation could prove stickier than investors expect, calling it the "skunk at the party" in his April shareholder letter.
With headline inflation running at 3.4% in August, Dimon said "every business should be prepared for volatility" in interest rates, echoing previous comments he has made.
Dimon said persistent inflation, global deficits, and enormous demand for capital, including for AI, remilitarization, and other infrastructure buildouts, could keep upward pressure on interest rates.
Despite his concerns, he stopped short of suggesting the economy is on the verge of a downturn, citing low unemployment, corporate profitability, and rising business formation as evidence of continued strength.
"There are a lot of things out there which are quite dangerous," Dimon said. "And how they sort out, I don't know."
He said the labor market remains the most important sign of whether those risks are translating into broader economic stress.
"It's when unemployment goes up that you have consumer credit losses, corporate credit losses, people cut back on spending," Dimon said. "That is the single most important thing for everybody."
David Hollerith covers a range of developments throughout the financial sector, from Wall Street to banking and asset management to crypto and fintech. Email him at david.hollerith@yahoofinance.com. Follow him on X at @DsHollers.
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