JPMorgan Chase CEO Jamie Dimon said Thursday that the Federal Reserve has lost some control of inflation, but noted the U.S. economy continues to indicate signs of strength.
“I actually have all of the respect for [Fed Chairman Jerome] Powell, but the very fact is we lost somewhat little bit of control of inflation,” Dimon said in an interview with CNBC’s Jim Cramer throughout the “Halftime Report.” It’s the primary of a two-part interview with Cramer, with the second installment airing later Thursday on “Mad Money.”
Dimon’s comments got here at some point after the Fed released the minutes from its Jan. 31-Feb.1 meeting, which showed members remain resolved to fight persistent inflation.
“Participants noted that inflation data received over the past three months showed a welcome reduction within the monthly pace of price increases but stressed that substantially more evidence of progress across a broader range of costs can be required to be confident that inflation was on a sustained downward path,” the minutes said.
Dimon himself said he expects that rates of interest could “possibly” remain higher for longer, as it might take the central bank “some time” to get to 2% inflation.
Even so, Dimon said he is not currently breaking out the recession playbook, as he is inspired by the strength of the U.S. economy.
“The US economy straight away is doing quite well. Consumers have quite a lot of money. They’re spending it. Jobs are plentiful,” Dimon said. “That is today. Out in front of us, there’s some scary stuff. You and I do know there’s at all times uncertainty. That is a traditional thing.”
Those comments contrast with Dimon’s previous remarks. In October, he said the U.S. economy will likely fall right into a recession in six to nine months. In December, he said higher inflation was eroding consumer wealth, which might lead right into a recession this yr.
The Fed didn’t immediately reply to CNBC’s request for comment.
