Rising Interest Rates—What Does Jamie Dimon Say?

Rising interest rates are still prevalent as ever.

CNBC reached out to JPMorgan Chase CEO Jamie Dimon for his thoughts on the state of interest rates in the U.S.

The Fed recently raised its benchmark interest rate to a targeted range between 4.25% and 4.5%. They anticipate the rate going as high as 5.1%.

While some metrics indicate the U.S. is on a downward inflationary path, Dimon believes this recent easing was due to temporary factors such as the reduction in oil prices and China’s economic slowdown due to COVID-19. Temporary is the key word in this equation. Dimon said oil and gas prices would rise in the next ten years, and a 5.1% cap on interest rates might not be enough to bring inflation down to comfortable levels. While Dimon said it was impossible to predict the future of the U.S. economy, he believes interest rates will reach as high as 6%.

Joshua Wilson, Founder and President of United Ethos Wealth Partners is also weary of any reports indicating inflation is easing.

Joshua’s Thoughts

“When it comes to inflation, if you can’t win, just change the rules. That’s what the Bureau of Labor Statistics must have concluded when they decided to put some lipstick on this inflation pig. Starting with the February report, the way CPI inflation is calculated is changing. Unlike the old calculation, that uses a two-year average price, the new calculation uses a one-year average price. The bottom line is that the new calculation will make inflation look lower. So, you should expect inflation headlines to start looking better next month. Jamie Dimon is right. Inflation will continue to rise. However, the speed at which the Fed raises rates could be muted if the lower published CPI numbers make the public feel better about inflation. After all, if they can manipulate the numbers, they can manipulate our feelings.”

Article by James Kent

Follow us on social media for the latest updates in B2B!

Image

Latest

Third Inning: Whatever is Normal, Do The Exact Opposite
April 18, 2024

In a world where most businesses adhere to traditional practices, the Savannah Bananas baseball team stands out by doing the exact opposite. The organization’s philosophy is simple yet revolutionary: “Whatever’s normal, do the exact opposite.” This approach not only distinguishes them from competitors but also creates unforgettable experiences for their fans. Most companies stick […]

Read More
multifamily
Multifamily Housing is the Sustainable Solution for Rapid Population Growth in Nashville
April 17, 2024

As Nashville grapples with an explosive growth in population and a consequent strain on its housing market, the city is witnessing a shift from traditional single-family homes to more space-efficient multifamily units. This transition reflects a broader trend seen across various neighborhoods, with places like Germantown experiencing a significant 37.1% rise in home prices […]

Read More
student athletes training
The Anticipation of Record Heat Must be the Concern of Educational Institutions and the Safety of their Student Athletes
April 17, 2024

Temperatures around the globe are continuing to set new records, and as a result, universities now face increasing challenges in ensuring the safety and performance of their student athletes. Scientists from the U.S. National Oceanic and Atmospheric Administration (NOAA) are warning that there is a 1 in 3 chance that 2024 could surpass 2023 […]

Read More
HVAC building efficiency goals
Improving HVAC Systems Plays a Key Role for Meeting Building Efficiency Goals
April 17, 2024

In today’s rapidly advancing world, the role of HVAC systems for building efficiency goals has become a pivotal topic for businesses and property owners alike. With energy costs soaring, the shift towards more energy-efficient systems isn’t just a luxury—it’s a financial imperative. Building efficiency upgrades could slash global energy demand by 12% and save […]

Read More