Jamie Dimon says ‘worst outcome is stagflation’, a scenario he doesn’t rule out
Jamie Dimon, Chairman and Chief Executive Officer (CEO) of JPMorgan Chase & Co. (JPM) speaks at the Economic Club of New York in Manhattan, New York City, U.S., April 23, 2024.
Mike Segar | Reuters
JPMorgan Chase Chief Executive Officer Jamie Dimon said Tuesday that he would not rule out the possibility of stagflation, although he has recently become more confident that inflation is falling from its peak.
“I think the worst outcome is stagflation — recession, higher inflation,” Dimon said at the Council of Institutional Investors’ fall conference in Brooklyn, New York. “And by the way, I wouldn’t rule that out.”
The CEO of the largest US bank made his comments at a time when investors are turning their attention to signs of slowing growth. Recent readings have shown price pressures increasingly moving toward the Federal Reserve’s 2% inflation target, but reports of hire workers And manufacturing has shown some signs of softening.
Investors will get some additional important data this week, with consumer price index and producer price index released on Wednesday and Thursday.
But Dimon worries that a series of looming inflationary forces, such as higher deficits and increased infrastructure spending, will continue to add pressure to an economy still reeling from the impact of higher interest rates.
“They’re all inflationary, basically in the short term, over the next few years,” Dimon said. “So it’s hard to look at [it] and say, ‘Oh no, we’re out of this together.’ I don’t think so.”
The bank’s chief has previously warned of an economic downturn. In August, he said a “soft landing” was likely. about 35% to 40%, implying that a recession is more likely.
