Dimon’s comments came after the Federal Reserve reduced its benchmark interest rate by half a percentage point, a move aimed at achieving a soft landing for the economy.
Dimon, who had previously remarked that whether the rate was cut by 25 or 50 basis points, the impact would not be “earth-shattering,” reiterated his belief that the rate cut will have minimal influence on the upcoming US presidential election.
For over a year, Dimon has cautioned that inflation could be more persistent than many investors believe. He has pointed to factors such as ongoing deficit spending and the “remilitarization of the world” as drivers of inflation.
In his April shareholder letter, Dimon noted that JPMorgan is preparing for interest rates that could range anywhere from 2 percent to over 8 percent.
Dimon reiterated his position at The Atlantic Festival, cautioning against placing too much faith in a soft landing. “I wouldn’t count my eggs,” he said, adding that the economy may shift to a scenario with slightly higher rates and inflation.