CEO of JPMorgan Chase & Co, Jamie Dimon, warned that inflation could become a "bad apple in the middle of a feast" for the US economy.
There is a risk that inflation will be higher than people think, and if that happens, it could be like a skunk appearing in the middle of a party" - Mr. Dimon said on Monday in an interview with CNBC on the sidelines of the bank's annual leverage financial conference in Miami - "Hopefully that will not happen".
This is the latest metaphor that Mr. Dimon uses to describe the risks lurking in the financial system. Just a few months ago, he used to compare the cracks in the credit market to a "cockroach", implying that once you see one, there may be many other problems lurking behind. Last week, he also warned that some competitors in the lending sector are doing "negligent" things just to chase profits.
Inflation data released last month showed that price pressure in the US relatively eased at the beginning of the year, when the consumer price index increased by 0.2% in January. However, since then, the US and Israel have launched missile attacks targeting Iran, causing oil prices to skyrocket and raising concerns about a new wave of inflation.
US President Donald Trump warned that the air strike campaign against Iran could last for weeks. The attacks last weekend killed Supreme Leader Ayatollah Ali Khamenei and many senior officials.
Current developments may cause gasoline prices to increase. But if the situation does not last, the inflation impact will not be too large" - Mr. Dimon said - "If the conflict lasts, the story will be completely different".
