Jaime Dimon warns inflation could soar beyond expectations as US, Israeli strikes on Iran spark terror fears

JPMorgan Chase CEO Jamie Dimon warned Monday that inflation could shape up to be a “skunk in a party” following the US and Israeli air strikes on Iran over the weekend.Following the outbreak of conflict, in which Iranian Supreme Leader Ayatollah Ali Khamenei was killed, oil prices surged over fears of supply constraints and Wall Street’s volatility index jumped to its highest level so far this year.“There’s some risk there’s more inflation than people think, and that could be like a skunk at a party if that ever happens,” Dimon told CNBC during an interview at his firm’s annual conference in Miami.“Hopefully it doesn’t happen.”Inflation slowed to 2.4% in January, its tamest pace since last May, according to the most recently available Consumer Price Index – but wholesale inflation rose 2.9%, much hotter than expected and far above the Fed’s 2% goal.The attacks on Iran – which President Trump warned could last “four weeks or so” – and their potential impact on gas prices have reignited concerns around sticky inflation.“This right now will increase gas prices a little bit, and again, if it’s not prolonged there’s not going to be a major inflationary hit,” Dimon said.“If it went on for a long time, that would be different.”Dimon appeared to show support for the strikes in Iran, emphasizing the importance of peace in the Middle East – though he warned the conflict could lead to a rise in cyber and terrorist attacks globally.“The most important thing is that we keep the Western world free and safe for democracy.

And people like this have gotten away literally with murder for 50 years, that’s far more important,” Dimon said.“But … as a corollary to that, you’ve got to expect there’ll be cyberattacks or terrorist attacks, either here or around the world.Banks may be targets,” he added.The exec also weighed in on the president’s $5 billion lawsuit against JPMorgan, accusing the institution of “debanking�...