Jamie Dimon, CEO of JPMorgan Chase, has recently expressed concerns about the possibility of a “hard landing” for the U.S. economy. In an interview with CNBC, Dimon emphasized that history shows that this scenario is a real possibility, where the U.S. could transition from a period of growth into an economic downturn.
Dimon highlighted that the worst-case scenario for the U.S. economy would be stagflation, a situation where inflation remains high, growth slows down, and unemployment rates rise. Despite these risks, Dimon mentioned that currently, the U.S. consumer is well positioned to withstand any potential slowdown.
In New York, Dimon had previously expressed cautious pessimism about the economic outlook, citing persistent inflationary pressures and global uncertainties. The recent minutes from the Federal Reserve’s meeting also indicated that policymakers expect inflation to gradually decrease towards their target of 2%.
While there have been some indications of a slowdown in inflation, the Fed officials are still cautious and would like to see more sustainable evidence of this trend before considering any future interest rate cuts