JPMorgan Chase CEO Dimon warns: AI infrastructure construction will push up capital demand, potentially leading to persistent inflation and long-term higher interest rates, becoming an "uninvited guest" in the global economy.
Dimon said on Wednesday that "huge infrastructure needs" such as global deficits, wars, remilitarization, and the construction of massive AI data centers will drive up capital demand, which could keep inflation high and prompt interest rates to remain elevated for longer. He referred to this potential consequence as the "uninvited guest" of the global economy. Furthermore, Dimon also noted that market leverage, including that of prime brokers, hedge funds, and exchange-traded products, is "quite high," increasing the risk of rapid market disruptions.
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