JPMorgan Chase & Co CEO Jamie Dimon arrives for a Senate Banking, Housing, and City Affairs Committee listening to on Capitol Hill September 22, 2022 in Washington, DC.
Drew Angerer | Getty Pictures
JPMorgan Chase‘s chairman and CEO Jamie Dimon says the the U.S. financial system may see a “onerous touchdown.”
When requested by CNBC’s Sri Jegarajah concerning the prospect of a tough touchdown, Dimon replied: “Might we really see one? After all, how may anybody who reads historical past say there is no likelihood?”
The CEO was talking on the JPMorgan International China Summit in Shanghai.
Dimon stated the worst final result for the U.S. financial system might be a “stagflation” state of affairs, the place inflation continues to rise, however development slows amid excessive unemployment.
“I take a look at the vary of outcomes and once more, the worst final result for all of us is what you name stagflation, greater charges, recession. Meaning company earnings will go down and we’ll get by means of all of that. I imply, the world has survived that however I simply suppose the percentages have been greater than different folks suppose.”
Nevertheless, he stated that “the buyer remains to be in good condition” even when the financial system slips into recession.
He pointed to the unemployment price, which has been beneath 4% for about two years, including that wages, residence costs and inventory costs have been going up.
That stated, Dimon factors out that client confidence ranges are low. “It appears to be principally due to inflation…The additional cash from COVID has been coming down. It is nonetheless there, , on the backside 50% it is type of gone. So it is I am gonna name it regular, not dangerous.”
Minutes from the Fed’s Might assembly launched Wednesday confirmed that policymakers have grown extra involved about inflation, with members of the Federal Open Market Committee indicating they lacked confidence to ease financial coverage and reduce charges.
That is breaking information. Please verify again for updates.
