JPMorgan Chase CEO Jamie Dimon is fearful about the opportunity of “stagflation,” which is a interval of sluggish financial development, excessive unemployment, and excessive inflation. He talked about the time period at two separate occasions final week.
“I fear it seems extra just like the ’70s than we have seen earlier than,” he said at an occasion on the Financial Membership of New York on Tuesday, per Fox Enterprise. The U.S. skilled stagflation brought on by an increase in oil costs within the Seventies.
Dimon additionally introduced up the priority in an interview with the Related Press on Friday at a Chase department opening within the Bronx, New York, including that he was “cautious” concerning the economic system.
JPMorgan Chase is the most important financial institution within the U.S. with $3.4 trillion in belongings.
Whereas Dimon advised the AP that he was “hopeful” for a comfortable touchdown, or an consequence that avoids a recession, he stated he was “just a bit extra doubtful than others {that a} [soft landing] is a given.”
Jamie Dimon, chairman and chief govt officer of JPMorgan Chase & Co., speaks throughout an Financial Membership of New York. Photographer: Victor J. Blue/Bloomberg by way of Getty Photos
Dimon’s feedback come as inflation charges are rising, shifting away from the Federal Reserve’s goal of two%. A March client worth index report from the U.S. Bureau of Labor Statistics recorded that the annual inflation price was 3.5%, the very best stage since September 2023. Rising gasoline and housing prices drove the rise.
The typical U.S. family is paying $227 extra per 30 days for requirements in comparison with one yr in the past.
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On the similar time, BLS knowledge confirmed that common hourly earnings elevated by solely 0.6%.
Dimon’s remarks additionally align with a Thursday Commerce Division report displaying that U.S. financial development slowed from January by means of March.
The report recorded that gross home product (GDP) elevated by 1.6%, under analyst expectations of two.4%.
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Nonetheless, whereas increased inflation and slower financial development appear to be taking place, the third a part of stagflation (excessive unemployment), is not seen within the numbers but.
April BLS knowledge confirmed that the unemployment price fell from 3.9% in February to three.8% in March. The identical report indicated that job postings elevated greater than anticipated, particularly within the healthcare, authorities, and building sectors.
