JPMorgan's Dimon warns that war with Iran could drive up inflation and interest rates

Golden Finance reports, April 6 news: JPMorgan Chase CEO Jamie Dimon warned on Monday that the Iran war could bring the risk of shocks to oil and commodity prices, which could keep inflation elevated and keep interest rates higher than the market currently expects. The warning was issued in the company’s 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 also face the possibility of ongoing and significant volatility in oil and commodity prices, as well as the reshaping of global supply chains, which could lead to more stubborn inflation and, ultimately, to interest rates that are higher than the market currently expects.” Dimon said that time will tell whether the Iran war achieved the United States’ objectives, and he added that nuclear proliferation remains the biggest danger from Iran. Dimon also said the U.S. economy continues to show resilience: consumers are still earning and spending, although it has recently weakened somewhat, and businesses remain healthy. But he cautioned that large-scale government deficit spending and past stimulus policies have driven the economy’s growth, and that increasing infrastructure spending remains an increasingly growing demand. (Jin Ten)