🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Jamie Dimon Warns Of Possible 'Hard Landing' For US Economy, Stagflation A Serious Threat

Published 23/05/2024, 14:37
© Reuters.  Jamie Dimon Warns Of Possible \'Hard Landing\' For US Economy, Stagflation A Serious Threat
JPM
-

Benzinga - by Michael Cohen, Benzinga Editor.

JPMorgan Chase & Co (NYSE:JPM) CEO Jamie Dimon has expressed concerns about the possibility of a “hard landing” for the U.S. economy, with stagflation being the worst-case scenario.

What Happened: Speaking at the JPMorgan Global China Summit in Shanghai, Dimon raised the possibility of a hard landing for the U.S. economy, reported CNBC. He noted that a “hard landing” could not be ruled out, considering historical patterns.

Dimon highlighted the worst possible outcome for the U.S. economy — a scenario of stagflation — where inflation continues to rise, but growth slows amid high unemployment.

Despite these concerns, Dimon pointed out that the consumer is still in good shape even if the economy slips into a recession.

Dimon emphasized the unemployment rate, which has been below 4% for about two years, and the increase in wages, home prices, and stock prices, according to CNBC.

However, the 68-year-old bank chief noted that consumer confidence levels are low, mainly due to inflation. He warned that the world is not adequately prepared for higher inflation.

Why It Matters: Dimon’s take comes after the Federal Reserve indicated that it may need to raise interest rates to curb inflation. That could potentially slow down the economy.

Dimon’s comments also come in the wake of increasing global economic influence from China. While speaking at the summit, he also underscored the significance of China in the global economy, a point also emphasized by the JPMorgan APAC CEO Sjoerd Leenart.

Dimon’s warning about a possible hard landing for the U.S. economy and the potential impact of stagflation adds to the growing economic uncertainty, especially in light of the Fed’s ongoing concerns about inflation.

Read Next: GameStop Just Pulled The Biggest Reverse Uno Card On Market Manipulators Ever

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created with a photo from Dustin Blitchok and Shutterstock.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.