JPMorgan Chase chief executive Jamie Dimon has warned that US inflation and interest rates could remain higher than markets expect because of high government spending. In his annual letter to shareholders, the head of the largest US bank by assets said JPMorgan had plans for interest rates going above 8 per cent and as low as 2 per cent. “It is important to note that the economy is being fuelled by large amounts of government deficit spending and past stimulus,” Dimon wrote.
Dimon also used his letter to warn that a boom in private credit could become an “unexpected risk in the markets”, arguing that the fast-growing industry was full of “very smart and creative” operators but “not all players are that good”. “And problems in the private credit market caused by the bad players can leak on to the good ones, even though private credit money is locked up for years,” Dimon said.