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

ME News, April 6 (UTC+8), JPMorgan Chase CEO Dimon warned on Monday that the Iran war could pose risks of oil and commodity price shocks, which could keep inflation elevated and push 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 are also facing the possibility of sustained, significant fluctuations in oil and commodity prices, as well as a reshaping of global supply chains, which could lead to more stubborn inflation and ultimately result in interest rates that are higher than the market currently expects.” Dimon said that time will tell whether the Iran war achieved the United States’ goals, adding that nuclear proliferation remains the greatest danger from Iran. Dimon also said the U.S. economy continues to remain resilient, with consumers still earning and spending, despite some recent weakening, and that businesses remain healthy. However, he cautioned that large-scale government deficit spending and past stimulus policies have driven economic growth, while increased infrastructure spending remains an increasingly growing demand. (Jin10) (Source: ODAILY)