Source: Markets Insider
The only bubble forming in financial markets is in sovereign debt, JPMorgan Chase CEO Jamie Dimon told CNBC on Wednesday. The chief executive railed against the negative interest rates seen in Europe, and warned that bonds with negative rates are a harbinger of poor market performance. When asked if he views the US stock market as overvalued, Dimon pointed to the US’s steady economic growth as justifying the record highs seen in 2020. Visit the Business Insider homepage for more stories. JPMorgan Chase CEO Jamie Dimon says the only bubble forming in financial markets is in sovereign debt, CNBC reported Wednesday morning. When asked if he sees any volatile sectors in the market, Dimon replied “only in sovereign debt.” He railed against the negative interest rates seen in Europe, noting that central banks’ solutions are largely reactionary and helping drive the debt’s lofty valuation. “Right now people think central banks around the world can do whatever they want. They can’t,” the bank CEO told CNBC, adding that inflation “would be the big negative surprise.” An unexpected surge in inflation would likely prompt central banks to raise interest rates to maintain steady price growth and cool economic expansion.