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Thursday, June 13, 2024

Jamie Dimon warns it’s possible the Fed could be forced into a sharp move next year

  • "The Fed can't always be proactive — I mean, sometimes they're going to have to be reactive."
  • The top uncertainty for the Fed has been the path of inflation.
  • But Dimon said that if those hot inflation figures continue into December then U.S. policymakers may have to admit that at least part of the price increases are here to stay.

JP Morgan CEO Jamie Dimon looks on during the inauguration of the new French headquarters of US' JP Morgan bank on June 29, 2021 in Paris.Michel Euler | AFP | Getty Images

JPMorgan Chase CEO Jamie Dimon has warned investors that the Federal Reserve could still be forced into a sharp policy move next year — despite its best efforts to soothe concerns over inflation and interest rates.

Fed Chairman Jerome Powell has already suggested that the central bank could start to dial back on its pandemic-era monetary stimulus before the end of this year. He is due to outline more details later on Wednesday at the end of the Fed's two-day policy meeting. The U.S. central bank is also due to publish its highly-anticipated inflation and interest rates forecasts.

Speaking to CNBC-TV18, Dimon said that if the U.S. continues to see inflation running hot over the next few months then the central bank could be forced to act quickly.

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