The risk of stagflation, or stagnation and inflation, shouldn’t be dominated out after August inflation knowledge got here in weaker than anticipated.
JPMorgan Chase CEO outlines “worst attainable consequence” for U.S. financial future, apart from recession.
“The worst consequence is stagflation,” Dimon stated. “And by the best way, I wouldn’t take that off the desk.”
Jamie Dimon, 68, made the remarks Tuesday to the Council of Institutional Investors in New York.
| Teletypewriter | Safety | Last | Edit | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 210.98 | +0.42 | +0.20% |
INFLATION RISES 2.5% IN AUGUST, LESS THAN EXPECTED
According to Bankrate, JPMorgan Chase is the most important financial institution within the United States, with $3.4 trillion in property.
The time period stagflation, a portmanteau of stagnation and inflation, refers to a scenario by which financial progress slows whereas inflation and unemployment rise.
The financial penalties of stagflation may trigger a decline in retirement financial savings and a inventory market crash; in keeping with Investopedia, the final time it occurred within the United States was within the Seventies.
Jamie Dimon, Chairman and CEO of JPMorgan Chase, testifies throughout a Senate Banking Committee listening to on the Hart Senate Office Building on December 6, 2023 in Washington, DC. The committee heard testimony from the most important monetary establishments throughout (Win McNamee/Getty Images)
Although August inflation rose lower than anticipated, coming in at 2.5%, the outlook for federal debt is grim, with the quantity rising to $35,309,184,612,870.00 as of September 12.
CONSUMERS SEE INFLATION ON HOLD, ANXIOUS ABOUT JOB MARKET, PERSONAL DEBT: NEW YORK FED SURVEY
Interest funds due in October on the nationwide debt now exceed the prices of each Medicare and the nationwide protection price range. The nationwide debt may contribute to additional inflation on the horizon.
This is the primary time in American historical past that curiosity on the nationwide debt has exceeded $1 trillion.
“So it’s exhausting to have a look at this and say, ‘Well, no, we’re out of the woods.’ I don’t assume so,” Dimon stated.
Jamie Dimon, chairman and chief government officer of JPMorgan Chase & Co., speaks throughout an Economic Club of New York (ECNY) occasion in New York, U.S., Tuesday, April 23, 2024. Dimon met with executives from the World Bank Group and a number of other different (Victor J. Blue/Bloomberg by way of Getty Images / Getty Images)
While inflation has fallen to close the Fed’s final goal of two%, a report shared Monday by the Federal Reserve Bank of New York exhibits that buyers’ views of the market are blended total.
Americans responded that they count on their spending to extend by 5 %, however their family incomes to extend by solely 0.1 proportion factors from final 12 months, the survey discovered.
