JPMorgan Chairman and CEO Jamie Dimon isn’t convinced the Fed’s war on inflation has been won.
The S&P 500
rallied 1.9%, and the small-cap Russell 2000
soared 5.4%, after the Labor Department reported a smaller-than-forecast 0.2% rise in core CPI. The year-over-year rate for consumer prices was 3.2%, and core CPI grew at a 4% rate.
“Personally, I think people are overreacting to short-term numbers, and they should stop doing that, because when you look at all the adjustments that go into them they are not completely valid,” he said in an interview with El Financiero Bloomberg TV.
“Inflation’s probably a little bit stickier than that shows,” he added.
Dimon did allow that the Fed is right to pause on interest rates, given the 500 basis points worth of hikes it’s made already. But he still warned that the Fed could still bring interest rates higher and that people should be prepared for it. “I’m afraid inflation might not go away that quickly.”