Dimon Warns Markets Underestimate US Rate Risks

JPMorgan Chase CEO Jamie Dimon warned that financial markets are underestimating the risk of U.S. interest rates rising, suggesting the probability of a rate hike is 40-50%, rather than the 20% priced in by markets. He described this as a significant 'cause for concern,' citing inflationary pressures from tariffs, U.S. government migration policies, and the federal budget deficit. Dimon criticized market complacency in the face of ongoing policy uncertainties, particularly those linked to President Trump's tariffs and global trade restructuring. He also noted that real-time U.S. economic data is difficult to interpret, complicating economic forecasts. His comments come after the Federal Reserve's recent decision to keep rates unchanged, despite persistent inflation. Dimon's remarks highlight growing concerns among top financial leaders about underappreciated risks in the U.S. economy.