The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

World News

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

by admin 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

0
FacebookTwitterGoogle +Pinterest
previous post
Intel used to dominate the U.S. chip industry. Now it’s struggling to stay relevant.
next post
Walmart to close 51 clinics as it shutters its entire Walmart Health division

Related Posts

Sony and Apollo send letter expressing interest in...

May 4, 2024

Star real estate agents Alexander brothers arrested in...

December 13, 2024

Nissan could face cost-cutting ‘carnage’ in Honda merger,...

December 25, 2024

Chuck E. Cheese makes a comeback, with trampolines...

January 12, 2025

As their customers age, department stores chase younger...

May 21, 2024

How crazy popcorn buckets became big business for...

February 20, 2025

Barcelona protesters throw items and spray travelers with...

July 10, 2024

Three-year inflation outlook hits record low in New...

August 14, 2024

Intel shares plunge 28%, dragging down global chip...

August 3, 2024

Shein’s global ambitions leaves some cybersecurity experts fearful...

July 10, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Bed Bath & Beyond relaunches with first store in Nashville, plans dozens more

      August 10, 2025
    • The Real Drivers of This Market: AI, Semis & Robotics

      August 10, 2025
    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

      August 10, 2025
    • Sydney Sweeney jeans controversy making advertising great again

      August 10, 2025
    • Nagasaki mayor issues chilling warning on 80th anniversary of atomic bombing

      August 10, 2025
    • Kash Patel celebrates major FBI achievements and record seizures during Trump’s first 200 days in office

      August 10, 2025

    Categories

    • Business (1,330)
    • Politics (4,206)
    • Stocks (1,577)
    • Uncategorized (45)
    • World News (1,323)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, 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 © 2025 thetraderharbor.com | All Rights Reserved