Jamie Dimon is skeptical about the odds of a 'soft landing'

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JPMorgan Chase CEO Jamie Dimon on the Federal Reserve's rate trajectory, 2024 economy, looming bank regulations and artificial intelligence.

JPMorgan Chase CEO Jamie Dimon on Thursday cautioned that markets are too optimistic about the odds of a soft landing as the U.S. economy continues to battle still-high inflation and interest rates.

«The odds of a soft landing, the market kind of prices in 70%. I think it's half of that,» Dimon said during an interview with The Wall Street Journal. «It looks a little bit more like the '70s to me, and I point out to a lot of people, things looked pretty rosy in 1972 – they were not rosy in 1973.»

At that time, unemployment and inflation were both high but economic growth was weak, a phenomenon now known as «stagflation.» Dimon has reiterated concerns that the economy risks headed toward a repeat of 1970s-style stagflation, a warning that has grown louder in recent months amid signs that progress on inflation has flatlined.

«Don't get lulled into a false sense of security that because today looks okay, tomorrow is going to be okay,» he said.

US ECONOMY ADDS 303K JOBS IN MARCH, MUCH STRONGER THAN EXPECTED

JPMorgan Chase CEO Jamie Dimon attends a hearing on oversight of Wall Street firms before the Senate Committee on Banking, Housing and Urban Affairs in Washington, D.C., on Dec. 6, 2023. (Aaron Schwartz/Xinhua via / Getty Images)

WHY ARE GROCERIES STILL SO EXPENSIVE?

Dimon's comments come as Federal Reserve policymakers weigh when to start cutting interest rates amid concerns that progress on inflation has stalled. While inflation has fallen considerably from a peak of 9.1%, progress has largely slowed since the summer. 

Investors have steadily dialed back their expectations as