JPMorgan Chase CEO predicts the Fed will raise interest rates 6 to 7 times this year as the determination to fight inflation grows

According to Bitpush, Jamie Dimon, CEO of JPMorgan Chase (JPM), said in an earnings call on Friday that rising inflation could prompt the Federal Reserve to raise interest rates as many as six or seven times this year. He said: "At this point, it's up to the Fed to thread the needle: ease inflation growth without stopping growth." Dimon expressed "great confidence" in Fed Chairman Powell.

In recent months, the Fed has made a sharp, hawkish shift on monetary policy, leaning toward a faster withdrawal of pandemic-era stimulus amid surging inflation and a faster-than-expected labor market recovery.

Bitpush previously reported that the U.S. Consumer Price Index (CPI) rose 7% year-on-year in December 2021, a nearly 40-year high. The impact of Omicron and supply chain pressures have led to commodity shortages in many parts of the United States. Google data shows that searches related to "food shortages" and "empty shelves" saw triple-digit and quadruple-digit percentage peaks last week. At the same time, companies and consumers have become accustomed to paying more for goods that take longer to reach them - which erodes purchasing power and further exacerbates inflationary pressures.

A few days ago, Dimon said in an interview with CNBC that the Federal Reserve will raise interest rates at least four times this year. David Ellison, portfolio manager of Hennessy Large Cap Financial Fund, commented that if Dimon's estimate is correct, assuming an increase of 25 basis points each time, it means that short-term interest rates may rise by 2% by the end of this year. He criticized Dimon's remarks on interest rate hikes as "irresponsible comments" because as the CEO of JPMorgan Chase, his predictions are likely to have an impact on the market.

JPMorgan Chase's core business loans grew 6% and Treasury investments rose 3%, driven by the economic recovery and net interest income from loans. Like other banks, the company will benefit from interest rate increases this year.

Bitpush previously reported that Federal Reserve Chairman Powell said at the confirmation hearing of the Senate Banking Committee: "If things develop as expected, we will normalize policy, which means we will end asset purchases in March, which means we will raise interest rates this year, and maybe at some point later this year, we will start to shrink the balance sheet, and this is the path to policy normalization."

Lael Brainard, a member of the Federal Reserve Board and the Fed's nominated vice chairman, also said that working to reduce inflation is the central bank's "most important task" and that the Fed will use its policies to do its utmost to control inflation.

Philadelphia Fed President Patrick Harker said Thursday he expects three to four rate hikes this year to combat inflation, in line with estimates released by the Federal Open Market Committee in December. Chicago Fed President Charles Evans also said he thinks three rate hikes are most likely, though he is open to more.