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

ME News. On April 6 (UTC+8), JPMorgan Chase CEO Dimon warned on Monday that the Iran war could bring risks of oil and major commodity price shocks, which could keep inflation persistent and keep interest rates higher than current market expectations. The warning was issued in the annual letter to shareholders. Dimon said, “The challenges we face are enormous.” He cited geopolitical risks such as the Russia-Ukraine conflict and broader hostilities in the Middle East. “Now, because of the Iran war, we also face the possibility of ongoing, significant volatility in oil and major commodity prices, as well as the reshaping of global supply chains, which could lead to more stubborn inflation and ultimately result in interest rates being higher than the market currently expects.” Dimon said that time will tell whether the Iran war has achieved the United States’ goals, adding that nuclear proliferation remains the greatest danger posed by Iran. Dimon also said the U.S. economy continues to show resilience, with consumers still earning and spending, even though it has recently weakened somewhat, and that businesses remain healthy. However, he cautioned that large government deficit spending and past stimulus policies have driven economic growth, and that increasing infrastructure spending remains an increasingly growing need. (Jin10) (Source: ODAILY)