Connect with us

Hi, what are you looking for?

Oracle of  Omaha SaysOracle of  Omaha Says

Stock

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
Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.






    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.
    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    A former Republican legislative candidate who traveled to Washington for former President Donald Trump’s ‘Stop the Steal’ rally was arrested Friday and charged with...

    Latest News

    Abbe Lowell, Hunter Biden’s attorney, filed an ethics complaint Friday against Georgia Rep. Marjorie Taylor Green after she displayed censured nude photos of the president’s...

    Stock

    Even as U.S. inflation broadly cools, frozen vegetable prices are hot. The average shelf price for frozen veggies rose by 18% in the past year...

    Latest News

    President Biden has overruled the Pentagon and chosen Adm. Lisa Franchetti to lead the Navy, making her the first woman, if she’s confirmed, to...

    Disclaimer: Oracleofomahasays.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 Oracleofomahasays.com