Jamie Dimon of JPMorgan cautions about the possibility of prolonged high inflation and interest rates.

Despite recent signs of easing in price pressures, CEO Jamie Dimon issued another warning about inflation on Friday.

"Although there has been some progress in reducing inflation, there are still several inflationary factors ahead, including large fiscal deficits, infrastructure needs, trade restructuring, and remilitarization of the world, according to Dimon in a statement along with the bank's second-quarter results. As a result, inflation and interest rates may remain higher than the market anticipates."

The monthly inflation rate decreased in June for the first time in over four years, causing speculation that the Federal Reserve may reduce rates.

In June, the 12-month rate of the consumer price index, which measures costs for goods and services across the U.S. economy, decreased by 0.1% compared to May, reaching its lowest level in more than three years.

Jerome Powell, the Fed Chairman, earlier this week expressed concern that maintaining high interest rates for an extended period could hinder economic growth. He hinted that rate cuts could be imminent if inflation continues to improve.

Dimon and many economists have raised concerns about the U.S.' growing debt and deficits. The federal government has already spent $855 billion more than it has collected in the 2024 fiscal year, and its deficit spending for fiscal 2023 was $1.7 trillion.