The U.S economy may now be heading for stagflation, says JP Morgan chief Jamie Dimon

economictimes.indiatimes.com:

JP Morgan chief Jamie Dimon, if the US economy heads towards a stagflation. There is a lot of hope of an economic recovery towards the end of the year, after the US markets having facing a downslide over the past few weeks due to various market forces in play, and a fear of an impending recession among US investors.

Is the US economy actually heading for a stagflation?

The chances of a stagflation cannot be taken off the table, feels Dimon, looking at the current US market scenario, which is behaving rather peculiarly, mostly due to the upcoming US Presidential elections, as well as the fears of an economic meltdown due to an incoming recession.
Inflation has eased down a little over the past week, but the risks of it flaring up is high, looking at the fact that recession is also a nearing possibility in current circumstances. If the US economy indeed heads towards a stagflation, it could take months to steady the stock markets, which is already feeling the heat of the US elections, with Donald Trump and Kamala Harris already in a deadlock, in terms of winning possibilities.

Inflation data showing recovery signs, other market factors in play

While the inflation scenario is showing signs of dipping, there are other market forces that can drive the inflation back up, looking at the current fragile state of the US economy, which is not showing any sign of a proper recovery. If Dimon is to be believed, the US economy is not completely out of danger, and could still be at a major risk throughout the year.

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