JPMorgan's Dimon warns that war with Iran could drive up inflation and interest rates

Deep Tide TechFlow message. On April 6, according to data from Jintou, JPMorgan Chase CEO Dimon warned on Monday that the risk of an Iran war could lead to shocks in oil and commodity prices, which could keep inflation persistent and keep interest rates higher than the market currently expects. The warning was issued in the annual letter to shareholders. Dimon said, “The challenges we face are enormous.” He cited geopolitical risks such as the Russia-Ukraine conflict and broader hostilities in the Middle East. “Now, because of the Iran war, we also face the possibility of continued, substantial volatility in oil and commodity prices, as well as the reshaping of global supply chains, which could lead to more stubborn inflation and ultimately result in interest rates being higher than the market currently expects.” Dimon said that time will tell whether the Iran war achieved the United States’ objectives, adding that nuclear proliferation remains the greatest danger from Iran. Dimon also said that the U.S. economy continues to show resilience, with consumers still earning and spending, even though it has recently weakened somewhat, and that businesses remain healthy. But he cautioned that a large amount of government deficit spending and the stimulus policies of the past have driven the economy, and that increasing infrastructure spending is still a growing need.