JPMorgan CEO Warns of Recession Threat, Higher Inflation, Stagflation

CN
2天前

JPMorgan Chase CEO Jamie Dimon stated last week that he wouldn’t rule out the possibility of stagflation, even as confidence grows that inflation is beginning to ease. Speaking at the Council of Institutional Investors’ fall conference in Brooklyn, New York, Dimon cautioned that despite signs of economic cooling, serious risks remain. He remarked:

I would say the worst outcome is stagflation — recession, higher inflation … I wouldn’t take it off the table.

Dimon expressed concern over inflationary pressures that may persist, citing factors such as increased government spending and rising deficits. He noted that while inflation data is improving, indicators such as employment and manufacturing reveal an economy under strain. “They’re all inflationary, basically in the short run, the next couple of years,” he cautioned.

The JPMorgan CEO stressed that despite some positive economic signals, significant uncertainties remain. “It’s hard to look at [it] and say, ‘Well, no, we’re out of the woods.’ I don’t think so,” he said, cautioning that inflationary pressures could weigh on the U.S. economy.

Dimon has consistently sounded alarms about an economic slowdown, noting in August that the likelihood of a “soft landing” was only 35% to 40%, signaling that a recession may be the more probable outcome. He pointed to various uncertainties such as geopolitics, housing, and spending. Meanwhile, JPMorgan has raised the likelihood of a U.S. recession this year.

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