For months, markets have been pricing in a clean, easy disinflation story—rate cuts coming soon, no major shocks, everything under control. Jamie Dimon isn’t convinced. The JPMorgan CEO just made it clear: he sees inflation sticking around, and the reasons aren’t going away anytime soon.
He pointed to massive fiscal deficits, trade restructuring, global rearmament, and infrastructure spending as long-term inflationary forces. These aren’t temporary supply chain disruptions or oil price spikes. These are structural changes that don’t just fade overnight.
Markets like to pretend the Fed can cut rates at will, but monetary policy lags while fiscal excess sticks around. If inflation starts creeping back up, those expected rate cuts could disappear fast. And with deficits ballooning, liquidity is becoming the real battlefield.
Dimon knows how this game works. If inflation resurges while the government keeps spending like there’s no tomorrow, the Fed will have no choice but to hold rates higher for longer. That means more pressure on debt markets, tighter credit conditions, and an economy that isn’t nearly as stable as people think. The market keeps betting on rate cuts. Jamie Dimon is betting on reality.
Sources:
https://www.investopedia.com/us-stocks-kind-of-inflated-jamie-dimon-davos-donald-trump-8778439
https://www.ntd.com/jpmorgan-chief-warns-of-stock-market-inflation_1042492.html