JPMorgan CEO Dimon sees inflation uptick

JPMorgan is sitting on $500 billion in cash

JPMorgan CEO Jamie Dimon said his bank is in good shape to handle what will likely be higher inflation.

"I do expect you are going to see higher rates, more inflation and we are prepared for that" Dimon said during a Q&A at Morgan Stanley's US Financials Conference. 

Ticker Security Last Change Change %
JPM JPMORGAN CHASE & CO. 150.64 -0.29 -0.19%

This is not the first time Dimon has addressed inflation. In his annual letter to shareholders, he outlined a scenario where inflation could move up. 

"We don’t know what the future holds, and it is possible that we will have a Goldilocks moment — fast and sustained growth, inflation that moves up gently (but not too much) and interest rates that rise (but not too much). A booming economy makes managing U.S. debt much easier and makes it much easier for the Fed to reverse QE and begin raising rates — because doing so may cause a little market turmoil, but it will not stop a roaring economy," he wrote. 

The Federal Reserve begins its two-day meeting Tuesday, with a decision on interest rates due Wednesday, along with what is expected to be an updated view on economic projections, including inflation. 

CONSUMER PRICES SURGE MOST SINCE AUGUST 2008

Consumer prices in May, year over year, rose 5%, the highest level since August of 2008 as reported by the Bureau of Labor Statistics last week. 

As for the nation's largest bank, Dimon pointed to its strong balance sheet and the flexibility they have for future investments. 

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"If you look at our balance sheet, we have like $500 billion in cash, we are effectively stockpiling more and more cash waiting for opportunities to invest in higher rates. So our balance sheet is positioned to benefit from rising rates both short end and long rates" he explained. 

He also noted that the U.S. consumer is "in unbelievably good shape."