Jamie Dimon, CEO of JPMorgan Chase, has expressed concern about the possibility of a “hard landing” for the US economy. In a recent interview with CNBC, he stated that while the worst outcome would be “stagflation,” characterized by high inflation, slow growth, and high unemployment, anyone familiar with history would understand that this scenario cannot be completely ruled out. Despite these concerns, Dimon believes that the US consumer is currently in good shape to withstand a potential slowdown.
In an event in New York, Dimon had expressed being “cautiously pessimistic” about the economic outlook. He cited stubborn price pressures and geopolitical tensions as factors contributing to his concerns. Minutes from the recent Federal Reserve meeting indicated that policymakers expect inflation to gradually decrease to their 2% target. While there have been signs of a cooling down in inflation, some Fed officials are cautious and want to see sustained evidence of this trend before considering potential interest rate cuts in the future.