JPMorgan's David Lebovitz is fairly confident about the state of the U.S. economy, but there is one issue weighing on his mind.
"The thing that keeps me up at night: I think there is more inflationary pressure in the system than a lot of people really appreciate," the global market strategist at JPMorgan Asset Management said in an interview with CNBC's "Power Lunch" on Friday.
"I think the labor market is tight. I think wages are going to start picking up into the end of the year. And I think that there is a risk that next year we could find ourselves in an inflation environment — it's not hyperinflation — and the Fed finds itself a little bit behind the curve."
The Federal Reserve passed on raising interest rates at its September meeting, but indicated it may hike before the end of the year. It hasn't increased rates since its first post-easing hike in December 2015.