Permanent Problem? Chase CEO Says Record-Breaking Inflation Is Here To Stay

Leaders in the financial industry are sounding the alarm, fearing severe inflation in the United States is already a permanent problem within the US economy.

CNBC reported, “Fears of inflation in the year ahead hit its highest level on record, according to a report by the Federal Reserve Bank of New York. Overall, the expectation is that the inflation rate will be up to 4% one year from now — a new high for one-year-ahead inflation expectations — and at 3.6% three years from now, the highest level since August 2013.”

Jamie Dimon, CEO of JPMorgan Chase, highlighted the probability that inflation is not temporary, contradicting Biden’s ongoing inflation-predictions. Dimon said, “[Our bank has] a lot of cash and capability and we’re going to be very patient, because I think you have a very good chance inflation will be more than transitory.”

Dimon went on to say, “If you look at our balance sheet, we have $500 billion in cash, we’ve actually been effectively stockpiling more and more cash waiting for opportunities to invest at higher rates. I do expect to see higher rates and more inflation, and we’re prepared for that.”

Economists surveyed by the Wall Street Journal are predicting a .5% increase in May’s producer-price index. The producer price index is a measurement of how prices change for domestic producers.

These concerns are growing stronger, particularly since the Department of Labor put Consumer Price Index (CPI) data, showing a .6% increase. This jump brought the annual increase to 5%, overshooting economist’s original predictions. This jump is the biggest increase since 2008.

An economist who worked under the Clinton and Obama administrations, Larry Summers, spoke with PBS last week saying, “The main risk is that our economy’s going to overheat. And then once it overheats, it’s going to be hard to put out the fire without doing a lot of damage and causing a lot of problems. And so I’d like to see us shift towards a policy concern. I mean, let me give you another example.”