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Fed should be patient on next move, JP Morgan's Dimon says

Published 07/17/2024, 05:41 AM
Updated 07/17/2024, 05:47 AM
© Reuters. FILE PHOTO: Jamie Dimon, Chairman and Chief Executive officer (CEO) of JPMorgan Chase & Co. (JPM) speaks to the Economic Club of New York in Manhattan in New York City, U.S., April 23, 2024. REUTERS/Mike Segar/File Photo
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BERLIN (Reuters) - The U.S. Federal Reserve should exercise patience with its next interest rate move to account for the chance of inflation rising again in a turbulent world, JP Morgan Chase (NYSE:JPM) CEO Jamie Dimon said in a media interview published on Wednesday.

"Inflation is moving in the right direction. But it would be good if the Fed waited now," Dimon told Switzerland's NZZ newspaper.

"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.

At the Fed's July 30-31 meeting, policymakers are expected to maintain the policy rate at 5.25-5.5%, but they may set the table to lower rates in light of renewed progress on easing price pressures, including an unexpected fall in June prices.

© Reuters. FILE PHOTO: Jamie Dimon, Chairman and Chief Executive officer (CEO) of JPMorgan Chase & Co. (JPM) speaks to the Economic Club of New York in Manhattan in New York City, U.S., April 23, 2024. REUTERS/Mike Segar/File Photo

Dimon, who has held the top role at JP Morgan Chase since 2006, told the NZZ that there was a plan for his eventual replacement, although any decision would be made by the board of directors.

"The board knows the candidates very well, they are all very capable," he said, adding: "We are also considering external people, but it will most likely be someone internal."

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