Why Jamie Dimon's Recent Thoughts on Inflation May Not Be So Bad
Inflation has spooked many investors in recent months, and it's been the main topic of debate among those following the stock market. Many economists and experts believe fears of inflation are overblown and could very well be temporary; they say recent price increases are related to pandemic-related factors such as excess stimulus and the reopening of parts of the economy that have largely been shut down till now. Some of that sentiment may have changed after the Federal Open Market Committee signaled on Wednesday that it now expects to start raising its benchmark federal funds rate in 2023 instead of 2024, suggesting inflation may not be as temporary as some think.
Everything JPMorgan Chase (NYSE: JPM) CEO Jamie Dimon has said, as well as recent actions by the country's largest bank, suggests that Dimon also may believe inflation is here to stay. But if the scenario Dimon seems to be envisioning plays out, it may not be as bad as some think. Let me explain.
Dimon is arguably the world's most influential banker, having been at the helm of JPMorgan since 2006. He helped navigate the bank through the Great Recession better than any large U.S. bank, and in my opinion, he did the same during the brunt of the coronavirus pandemic.
Source Fool.com
