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JPMorgan's Dimon says he can't rule out hard landing for U.S. economy - CNBC

Published 05/23/2024, 06:11 AM
© Reuters.

Investing.com -- The prospect of the U.S. economy slipping into a "hard landing" cannot be ruled out, according to JPMorgan Chase (NYSE:JPM) Chief Executive Jamie Dimon.

In an interview with business news channel CNBC, Dimon argued that "anyone who reads history" cannot discard the possibility of this scenario, which would see the U.S. dip into an economic downturn following a period of recent growth.

Dimon told CNBC that the worst outcome for the world's biggest economy would be "stagflation," in which inflation remains sticky while growth slows and unemployment is high.

However, he said that currently the U.S. consumer is still in "good shape" to weather the impact of a possible slowdown.

The comments come after Dimon warned at an event in New York earlier this week that he was "cautiously pessimistic" about the broader economic outlook due to stubborn price pressures and geopolitical tensions.

Minutes from the Federal Reserve's latest meeting released on Wednesday showed policymakers at the central bank believe elevated inflation will only ease slowly back down to their 2% target.

Although recent figures have hinted at a cooldown in inflation, several Fed officials have said they would still like to see more evidence that the decline is sustainable before rolling out any potential upcoming interest rate cuts.

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