JPMorgan's Dimon warns that Iran war could raise inflation and interest rates

ME News reports that on April 6th (UTC+8), JPMorgan Chase CEO Jamie Dimon warned on Monday that the Iran war could pose a risk of oil and commodity price shocks, which could sustain inflation and keep interest rates above current market expectations. The warning was issued in the annual letter to shareholders. Dimon said, “The challenges we face are enormous.” He mentioned geopolitical risks such as the Russia-Ukraine conflict and broader hostilities in the Middle East. “Now, due to the Iran war, we also face the possibility of sustained large fluctuations in oil and commodity prices, as well as the reshaping of global supply chains, which could lead to more stubborn inflation and ultimately higher interest rates than the market currently expects.” Dimon said that time will tell whether the Iran war has achieved America’s goals, and he added that nuclear proliferation remains the greatest danger from Iran. Dimon also stated that the U.S. economy continues to remain resilient, with consumers still earning and spending, despite recent weakening, and businesses remaining healthy. But he warned that large government deficit spending and past stimulus policies have driven economic growth, and increasing infrastructure spending remains an increasingly pressing need. (Jin10) (Source: ODAILY)