Jamie Dimon, Chairman and Chief Government Officer (CEO) of JPMorgan Chase & Co. (JPM) speaks on the Financial Membership of New York in Manhattan, New York, USA, April 23, 2024.
Contemporary Mike | Reuters
JPMorgan Chase CEO Jamie Dimon stated on Tuesday that he wouldn’t rule out stagflation, even with extra confidence lately that inflation is coming off its highs.
“I might say the worst end result is stagflation — recession, greater inflation,” Dimon stated at a fall convention by the Council of Institutional Traders in Brooklyn, New York. “By the way in which, I would not take it off the desk.”
The CEO of America’s largest financial institution made his feedback as traders turned their consideration to indicators of slowing progress. The most recent readings confirmed that value pressures are more and more transferring in direction of the Federal Reserve’s 2% inflation goal, however stories of employment and production have revealed some indicators of softening.
Traders will get some further key knowledge this week, with the Shopper Value Index and Producer Value Index approaching Wednesday and Thursday.
However Dimon worries that a variety of inflationary forces on the horizon, resembling greater deficits and elevated infrastructure spending, will proceed so as to add stress to an economic system nonetheless reeling from the affect of upper rates of interest.
“They’re all inflationary, principally within the quick time period, the subsequent few years,” Dimon stated. “So it is arduous to observe [it] and say, “Oh no, we’re out of the woods.” I do not suppose so.”
The top of the financial institution had beforehand warned of an financial slowdown. In August he stated the possibilities of a “smooth touchdown” had been about 35% to 40%, hinting at a recession is the extra seemingly end result.
