Another warning about him and the high voiced by her CEO, Jamie Diamond, despite recent signs of price pressure relaxation. “There has been some progress in reducing inflation, but there are still multiple inflationary forces ahead of us: major fiscal deficits, infrastructure needs, trade restructuring and re-militaryisation of the world,” Daimon said in a statement along with the bank’s announcement of results for the second quarter. ‘Inflation and interest rates may therefore remain higher than the market expects,’ he added. His comments came after this week’s figures showing that the monthly inflation rate declined in June for the first time in more than four years, which fed the bets that the Fed could reduce interest rates soon. The consumer price index was reduced by 0.1% in June compared to May, resulting in the 12 month rate to 3%, about the lowest level in over three years. Fed President Jerome Powell earlier this week expressed his concern that maintaining interest rates at very high levels for a long time could jeopardise economic growth, implying that interest rate cuts could be “showed” on the horizon, as inflation continues to show progress. Dymon, for his part, aligned himself with many economists who knock on the bell of danger for the growing debt and deficits of the US. The federal government has so far spent $855 billion more than it has collected in the financial year 2024. For the budget year 2023, government deficit expenditure amounted to $1.7 trillion.