Jan 10 (Reuters) – JPMorgan Chase & Co (JPM.N) Chief Govt Officer Jamie Dimon mentioned the American shopper was nonetheless sturdy within the face of heightened financial uncertainties, in an interview with Fox Enterprise revealed on Tuesday.
“Their stability sheets are in fine condition. They’re spending 10% greater than pre-COVID,” Dimon mentioned, at the same time as financial uncertainties arising out of the Russia-Ukraine battle and the U.S. Federal Reserve’s financial coverage tightening persist.
Dimon mentioned the uncertainties “might very effectively mitigate”, or not, and questioned if the they’d be sufficient to encourage the Federal Reserve to hike rates of interest to five%.
Fed officers in December predicted that the speed, presently within the 4.25%-4.50% vary, would rise to simply over 5% by the top of 2023 and sure stay there for a while.
However bond markets doubt the central financial institution would push charges that far.
Reporting by Niket Nishant in Bengaluru; Enhancing by Shinjini Ganguli
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