Jamie Dimon, the CEO of J.P. Morgan, has expressed his concerns about the potential impact of the Iran conflict on global oil supply and inflation. Dimon believes that the Iran conflict may already be enough to scare off the Fed for good, as it could disrupt global oil supply and push prices higher. This would be an unpalatable outcome for voters in the U.S., who are already nervous about the pandemic-era price rises and tariff-related hikes. Dimon warns that inflation may prove to be the "skunk in the room," as the conflict in the Middle East could disrupt trade routes and increase gas prices. However, he also acknowledges that the impact on inflation would depend on the duration of the conflict. Meanwhile, speculators are already on the fence about whether the Fed will deliver another rate cut at its meeting this month, and the latest jobs report has come back stronger than expected. The Producer Price Index (PPI) increased 0.5% in January, marking an upward trend since October. The CME's FedWatch barometer prices a 97% chance of a hold at the meeting in a fortnight's time. The Iran conflict may have been the final nail in the coffin for the Fed's rate cuts, and the world's most innovative leaders will convene at the Fortune Workplace Innovation Summit in Atlanta to explore how AI, humanity, and strategy converge to redefine the future of work.
