JPMorgan CEO Warns Of Potential Stagflation Amid Economic Uncertainty

According to Odaily, JPMorgan Chase CEO Jamie Dimon recently expressed concerns about the possibility of stagflation, despite growing confidence that inflation is beginning to ease. Speaking at the Institutional Investor Committee's fall meeting in Brooklyn, New York, Dimon warned that significant risks remain even as the economy shows signs of cooling. He stated, 'I think the worst outcome is stagflation—recession, higher inflation... I wouldn't rule that out.' Dimon highlighted ongoing inflationary pressures, citing increased government spending and rising deficits as contributing factors. While inflation data is improving, indicators such as employment and manufacturing suggest the economy is under strain. He cautioned, 'These are all inflationary, basically in the short term, for the next few years.' He emphasized that despite some positive economic signals, substantial uncertainty persists, and inflationary pressures could weigh on the U.S. economy. Dimon has consistently warned about economic slowdown, noting in August that the likelihood of a 'soft landing' is only 35% to 40%, indicating that a recession might be a more probable outcome. He pointed to various uncertainties, including geopolitical issues, housing, and spending. Meanwhile, JPMorgan has increased the probability of a U.S. economic recession this year.