‘There Will Be A Crisis’: 4 Business Leaders Sounding The Alarm Over Inflation

Inflation in the United States is reaching record levels — and Americans are starting to notice.

In essence, inflation is the erosion of a currency’s purchasing power over time. If, for example, inflation remains at 2% for a year, then the value of each dollar — whether new earnings or previous savings — drops in value by 2% over that same period.

While the Federal Reserve has pegged its long-term inflation target at 2%, the United States economy has witnessed inflation rates well above the official benchmark since March 2021. For three of the past four months, inflation has remained at roughly 5.4%.

Higher-than-usual inflation has played a role in fading consumer optimism, leading some analysts to worry about a looming recession. Likewise, America’s business leaders — regardless of their politics — are sounding the alarm over rising price levels.

Jamie Dimon — JPMorgan Chase

Jamie Dimon — the longtime chief executive of JPMorgan Chase — indicated that high inflation will likely extend beyond the near term.

Beyond his leadership of the investment banking world, Dimon is the Chairman of The Business Roundtable and formerly served as a board member of the Federal Reserve Bank of New York. He told CNBC that JPMorgan Chase — the nation’s largest bank by assets — foresees a sustained rise in price levels.

“[Our bank has] a lot of cash and capability and we’re going to be very patient, because I think you have a very good chance inflation will be more than transitory,” he said. 

“If you look at our balance sheet, we have $500 billion in cash, we’ve actually been effectively stockpiling more and more cash waiting for opportunities to invest at higher rates. I do expect to see higher rates and more inflation, and we’re prepared for that.”

Bill Ackman — Pershing Square Capital

Bill Ackman — the founder and leader of Pershing Square Capital Management — said that the Federal Reserve “should taper immediately and begin raising rates as soon as possible.”

With a $3.3 billion net worth, Ackman is known for deals involving firms like Wendy’s International, Tim Hortons, and Target Corporation. Ackman told the Federal Reserve Bank of New York that inflationary pressures pose a risk to economic stability.

“We are continuing to dance while the music is playing, and it is time to turn down the music and settle down,” Ackman explained, adding that his firm put money “where our mouth is in hedging our exposure to an upward