Alex Wroblewski/Getty Images News
JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon has called on the U.S. Federal Reserve to exercise patience with its next interest rate move to account for a potential rise in inflation again.
Speaking to Switzerland's NZZ newspaper, Dimon said: “Inflation is moving in the right direction. But it would be good if the Fed waited now.”
"I think there are a lot of reasons why inflation could rise again in the future: increasing government spending, the re-militarization of the world, the extraordinary investments in the green economy, the restructuring of trade,” he added.
The Fed aggressively hiked interest rates from near zero to 5.25%-5.50% over 2022 and 2023, and the federal funds rate target range has stayed at that level for almost a year.
Policymakers are expected to maintain the policy rate at 5.25-5.5% at the upcoming open market committee meeting, scheduled for July 30-31.
As part of his semiannual update on monetary policy last week, Fed Chair Jerome Powell said that, although "considerable progress" has been made in taming inflation, the central bank will require additional favorable data to bolster confidence that inflation is on a sustainable path toward its 2% goal.
The Fed boss also warned that initiating rate cuts too soon or too late "could unduly weaken economic activity and employment."
More on interest rates: