JPMorgan Chase CEO Jamie Dimon is not one to shy away from bold statements.
Dimon has been critical of cryptocurrencies, referring to them as a “pet rock” in his most recent comments.
He also strongly defended continued funding of his bank for fossil fuel developments in the face of climate change, telling Congress that halting such projects “would be the road to hell for America.”
Dimon, has been the CEO of JPMorgan (JPM) – Get a free report, the largest US bank by assets, for nearly two decades. He is now making a bold prediction for the US financial world, even as some project the Federal Reserve is nearing a pause in its interest rate hikes.
“In fact, I think rates will probably go up more than 5%.” Dimon said in an interview at the World Economic Forum in Davos, Switzerland. “That’s my own opinion because I think there’s a lot of underlying inflation that won’t go away as quickly,” he told CNBC.
Dimon cited two factors for the recent drops in inflation. “I think we’ve had the benefit of China slowing down. The benefit of oil prices falling a bit.”
However, and perhaps not surprisingly, Dimon sees oil and gas prices rising. “I think oil and gas prices will probably go up in the next 10 years. We’re not investing enough in oil and gas to really keep them down,” he said.
Furthermore, “China will no longer be deflationary.”
All that said, Dimon doesn’t seem overly concerned about the US economic outlook. “If we have a mild recession and rates go up to 6%, we’re all going to be fine,” he said.
