JPMorgan Chase CEO Warns of "Higher-for-Longer" Interest Rates
Dimon Says Fed Could Hike Rates to 8%
Bank Earned $29.1 Billion in 2022 Despite Economic Challenges
Jamie Dimon, the CEO of JPMorgan Chase, used his annual letter to shareholders to warn of "higher-for-longer" interest rates. Dimon said he is skeptical that inflation will return to the Fed's target of 2%, and as a result, he believes the Fed could raise rates to 8%.
Despite the economic challenges, JPMorgan Chase earned $29.1 billion in net income on revenue of $122.9 billion in 2022. This was down from the $36.4 billion in net income the bank earned in 2021, but still a solid performance.
Dimon's warning about interest rates is in line with the views of other economists. The market is currently pricing in a peak Fed funds rate of around 5.25%, but some economists believe that the Fed could ultimately raise rates to 6% or even 7%.
If the Fed does raise rates to 8%, it would be the highest level since 1981. Higher interest rates would make it more expensive for businesses to borrow money and invest, which could slow economic growth.
Comments