JPMorgan's Dimon hopes for soft landing for US economy but says stagflation is a possible scenario
JPMorgan CEO Jamie Dimon says he’s hopeful the Federal Reserve can bring down inflation without causing a recession but wouldn’t rule out more troubling possibilities, such as stagflation
NEW YORK — JPMorgan Chase CEO Jamie Dimon says he’s hopeful the Federal Reserve can bring down inflation without causing a recession but wouldn’t rule out more troubling possibilities, such as stagflation.
In an interview with The Associated Press at a Chase branch opening in The Bronx, Dimon said he remained “cautious” about the U.S. economy and said inflation may be stickier for longer and that “stagflation is on the list of possible things” that could happen to the U.S. economy.
“You should be worried about (the possibility of stagflation),” Dimon said.
Dimon did emphasize that he's still “hopeful” for the U.S. economy to experience a soft landing, where growth slows but the economy avoids a recession even if inflation remains a little high, but he's not certain that is the most likely outcome.
“I'm just a little more dubious than others that a (soft landing) is a given,” he said.
The Fed rapidly raised interest rates in 2022 and 2023 after inflation reached the highest level in four decades. Fed officials have indicated they expect to begin lowering rates at some point, but the timeline has been pushed back as inflation remains well above the central bank's target rate of 2%.
Dimon spoke to the AP on a range of issues, including the economy, the independence of the Federal Reserve, the need for banks to open branches and the pressing geopolitical issues of the day.
Inflation has been stubbornly elevated so far this year, and a report Thursday showing growth slowed in the first three months of this year fanned fears of
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