Insiders Advisor
  • Stocks
  • World News
  • Business
  • Politics
  • Stocks
  • World News
  • Business
  • Politics

Insiders Advisor

Business

JPMorgan CEO Jamie Dimon hopes for soft landing for U.S. economy but says stagflation is possible

by April 30, 2024
April 30, 2024
JPMorgan CEO Jamie Dimon hopes for soft landing for U.S. economy but says stagflation is possible

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 independence of the Federal Reserve, the health of the U.S. consumer, 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 “stagflation,” which occurs when the economy is weak, or in recession, yet prices keep moving higher. It’s a particularly miserable combination of economic circumstances, with high unemployment occurring along with rising costs. Typically, a sluggish economy brings down inflation.

Stagflation last occurred in the 1970s, when conditions were far worse than today. In 1975, for example, inflation topped 10% while the unemployment rate peaked at 9%. Inflation is now 3.5% and unemployment just 3.8%, near a half-century low. If stagflation did occur, Dimon said he believes it would not be as bad as it was in the 1970s.

Fears of stagflation eased Friday after a government report showed consumer spending stayed strong in March, suggesting the economy will keep expanding at a solid pace in the coming months.

Dimon also emphasized the need for the Federal Reserve to remain independent, following a report by The Wall Street Journal this week that said advisors for former President Trump were considering ways to curb the independence of the Fed should again be elected. The steps could include making the Fed’s chairman removable by the president or requiring the president to be consulted on any changes to interest rates.

“I don’t know what these people are thinking, or how they think they are going to go about this,” Dimon said, saying that any changes would likely require legislation.

Chase was opening its 17th “community center” branch on Friday. These are larger branches that are designed for low-to-moderate income areas. They are designed with multipurpose areas that do workshops and financial literacy work for communities in need.

Glennys Arias, 43, lives in the Bronx and works as an Uber driver. She’s been banking with Chase for six months and said she typically comes to use the ATM, for check cashing, and to check on her credit.

She said the branch has met her needs and she hadn’t heard about the expansion or upcoming classes or events. “I didn’t know about any of that, but I’d come for that,” she said, of the programming.

In off-the-cuff remarks, Dimon noted the steady stream of customers.

“I love the fact that so many people are walking in here. So many people are nervous about how they’ll be treated when they walk into a bank branch.”

This post appeared first on NBC NEWS
previous post
Peacock raising prices by $2 ahead of the Summer Olympics as streaming wars rage on
next post
Paramount and Skydance inch closer to a merger with one last big hurdle remaining

Related Posts

Home sale commissions are getting a shake-up this...

August 18, 2024

How the Olympics helped transform Salt Lake City...

December 11, 2024

How the Inflation Reduction Act sparked a manufacturing...

August 20, 2024

The Fed may soon cut interest rates. That...

July 11, 2024

Amazon’s Prime Day a ‘major’ cause of worker...

July 17, 2024

Costco hikes membership fee for the first time...

July 11, 2024

Biden blocks Japan’s Nippon Steel from $15 billion...

January 6, 2025

Dow falls 600 points in worst day of...

May 24, 2024

Fed’s key inflation measure cooled slightly from a...

July 26, 2024

The IRS’s new, free ‘Direct File’ service for...

February 28, 2024

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Latest News

    • State Department says 59,000 tons of food assistance are in motion after reports of incinerated aid

      July 18, 2025
    • Pentagon to probe Microsoft’s use of Chinese engineers on sensitive defense systems, Hegseth says

      July 18, 2025
    • GOP senator reveals the ‘dirty’ secret to Trump’s Make America Healthy Again movement

      July 18, 2025
    • Russia says NATO threatens WWIII in latest deterrence plan that could take down Kaliningrad ‘faster than ever’

      July 18, 2025
    • Pro-Israel congressman accuses Tel Aviv of ‘mocking’ Trump with ‘suicidal’ strikes in Syria

      July 18, 2025
    • House Republicans face mounting resistance as third ex-Biden WH aide pleads Fifth Amendment

      July 18, 2025

    Categories

    • Business (1,310)
    • Politics (6,459)
    • Stocks (904)
    • World News (460)
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: insidersadvisor.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 insidersadvisor.com | All Rights Reserved