Jamie Dimon Warns Rates May Stay 'Higher For Long'| AI, Remilitarisation Fuel Global Capital Demand

You know, we spoke about monetary policy and the fiscal situation. I mean, I think what's happened here with the two conflicts has added to the pressure there. As a result of it, inflation has been sticky. We've seen rate hikes. So I just wanted your thoughts there. By the way, last time we were waiting to see who will be the Fed chair, the new Fed chair. We have the new Fed chair. We heard what he said and what he's done. Do you think this is the start of a hiking cycle, Jamie? I think the world of Kevin Walsh, I think, is quite bright. I think he's raising a lot of important issues. I'm in favor of task force, but I am in favor of raising issues and saying, can we do a better job than we did before? I don't think what you're seeing is just because of war. I think you have a huge demand for capital. But usually rates relate to inflation, demand for capital. You know, there are a lot of arguments made years ago that, you know, the savings glut and therefore is lower for longer. Now you can look at capital demands of both sovereign debt being a big part of it, all sovereigns, not just the United States, and the rest of the world. These are huge numbers. And it's not just AI, it's CapEx, it's infrastructures, remilitarizations. You have more demand for capital. And those things may very well be raising rates. In addition, you know, maybe somewhat inflation and other stuff, but that could have happened anyway. And the central bank simply has to deal with it. Do you think the market is pricing in a lot more than what will actually come to pass in terms of rate hikes? I'm saying bond markets, for example, have already reacted, right? I mean, yields are already higher, market interest rates. I think I was here last year, they're probably 4% of 10 year bond, now they're 5%. And I think inflation has turned out to be stickier than people thought, which I... You made that point last time as well. And I think that's still true going forward. And I think there are a lot of things in inflation that, you know, of course you're data dependent. I mean, can you imagine the Fed saying, I don't care about data, we're gonna do whatever we feel like. But I would say, what is data? Is data like today's data, monthly data? The data itself is not good, because if you look at it, and you actually analyze it, you say, I wouldn't rely on those adjustments and how they come up with, is it the past six months? And what about data that's kind of we know about, but it's in the future, remilitarization, infrastructure spending, AI spending, you know, ongoing government deficits, because those will affect inflation too. So part of that inflation number, maybe the die's already been cast. It isn't about what the Fed does next raise. And so, and of course, they have to react to what they see. So we'll see. I'm hoping that inflation stays here and starts to come down. I don't bet on that. I think there's a chance it won't. And it may even go up a little bit. So maybe that 2% number is perhaps not the right number. It has to be higher. Oh, no, I think they should stick to the 2%. I think that inflation is a long-term problem for countries. I think it's wrong to change it now. Maybe after it goes through these task forces, they'll change it, but it should be a very thoughtful thing. And maybe less than 2%. And there are governments who did 1% for a long period. AI is going to do that. I mean, deflation and productivity increase, etc. It probably will be, but not next year. Just to complete that loop, are we in that era, which I think they didn't start now, but maybe started a couple of years back, but our rates around the world, developed market, I mean, we've seen what's happening with bond deals around the world, Japan, Germany, Europe, I mean, all over, right? Is the trajectory higher as far as bond deals are concerned? I think it could be. It could be now a little higher for longer. Yes, I think there's a good possibility. That's true. That is true. Yeah. But I don't bet. I mean, I'm not a hedge fund. I don't bet on these things. No, just your view. No, but I don't have a view other than probabilities and possibilities, because I don't think you can say, this is what I think. But I think the odds of them going higher is more than other people think. And I tell clients, you should be prepared in any economy for volatility in whatever price, oil prices, cheese prices, wage prices, healthcare price, they all have volatility, but credit and interest are a big part of that. And obviously, for banks, they're one of the biggest parts of that. With confidence as we beam live from the CNBC TV18 Motilal Oswal Studio.