Dimon Raises Red Flags: Markets Underestimate Interest Rate Hike Risks

JPMorgan Chase CEO Jamie Dimon has expressed concern that financial markets are not fully appreciating the risk of potential hikes in U.S. interest rates, warning that such an event is a real possibility. Dimon's remarks come after the Federal Reserve decided to hold rates steady last month.

Dimon, addressing an event at Ireland's foreign ministry, stated the probability of future rate increases was higher than commonly assumed, suggesting a 40-50% chance as opposed to the market's current pricing of 20%.

Dimon cited U.S. trade and economic policies, including tariffs and the budget deficit, as key inflationary factors influencing his prediction. The CEO described real-time economic data as difficult to interpret and highlighted market complacency in the face of these challenges.

(With inputs from agencies.)