Jamie Dimon, Chairman and Chief Government officer (CEO) of JPMorgan Chase & Co. (JPM) speaks to the Financial Membership of New York in Manhattan in New York Metropolis, U.S., April 23, 2024.
Mike Segar | Reuters
JPMorgan Chase CEO Jamie Dimon mentioned Tuesday he would not rule out stagflation, even with higher confidence just lately that inflation is coming off its highs.
“I might say the worst end result is stagflation — recession, larger inflation,” Dimon mentioned at a fall convention from the Council of Institutional Buyers in Brooklyn, New York. “And by the best way, I would not take it off the desk.”
The chief govt of the biggest U.S. financial institution makes his feedback at a time when traders are turning their consideration to indicators of slowing development. Current readings confirmed pricing pressures more and more on their approach to the Federal Reserve’s 2% inflation goal, however studies on employment and manufacturing have revealed some indicators of softening.
Buyers will get some extra key information this week, with the patron value index and producer value index coming Wednesday and Thursday.
However Dimon worries {that a} raft of inflationary forces on the horizon, akin to larger deficits and elevated infrastructure spending, will proceed so as to add stress to an economic system nonetheless reeling from the impression of upper rates of interest.
“They’re all inflationary, principally within the quick run, the subsequent couple of years,” Dimon mentioned. “So, it is onerous to have a look at [it] and say, ‘Nicely, no, we’re out of the woods.’ I do not assume so.”
The financial institution chief has beforehand warned of an financial slowdown. In August, he mentioned the percentages of a “mushy touchdown” have been round 35% to 40%, implying a recession is the extra doubtless end result.
