'Wall Street Crown Prince' "Fed to Raise Interest Rates Four Times This Year"

Jamie Dimon, JP Morgan CEO
"US Economy Strong Despite Rate Hikes"
"Individual DSR at Best Level in 50 Years"

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Jamie Dimon, CEO of JP Morgan Chase, known as the "Crown Prince of Wall Street," forecasted that the Federal Reserve (Fed) may raise interest rates more than four times this year, and although stock market volatility will increase, the U.S. economy will continue to grow.

In an interview with CNBC on the 10th (local time), CEO Dimon said, "Inflation could rise more than the Federal Reserve expects. Personally, I would be surprised if the Fed only raises interest rates four times this year."

Dimon's remarks are more aggressive than Goldman Sachs' earlier forecast of four rate hikes this year.

CEO Dimon anticipated that the interest rate hikes would have a significant impact on the stock market this year. He warned, "As interest rates rise, market volatility will spread."

Dimon predicted, "If we are lucky, the Fed may slow down the pace, allowing the market to achieve a soft landing."

He expected that despite the rate hikes, the U.S. is heading toward the best economic growth in decades and will maintain strength through next year.

CEO Dimon observed that the impact of interest rate hikes on the economic situation and consumers is limited.

He added, "Consumers' financial conditions are better than ever. The DSR (Debt Service Ratio) is the healthiest it has been in the past 50 years."

CEO Dimon regarded the fact that consumers are spending 25% more than in the past as a foundation for economic growth.

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