Skip to content

JPMorgan CEO warns of potential ‘hard landing’ for U.S. economy

JPMorgan CEO warns of potential ‘hard landing' for U.S. economy
Elmaz Sabovic

The stock market initially expected multiple rate cuts in 2024. However, as the year progressed, persistent inflation has led the Federal Reserve to reconsider its approach, deciding to maintain current rates with discussions of potential rate hikes gaining traction.

JPMorgan CEO Jamie Dimon believes inflation is more persistent than anticipated and suggests that rate hikes could be necessary, labeling earlier predictions of rate cuts as overly optimistic.

When asked about the possibility of predicting the number of rate cuts this year or future inflation levels, Dimon responded that such forecasts have historically been inaccurate and emphasized that the stock market needs to adapt in real time.

There is always a chance of a hard landing, according to Dimon

While speaking at the JPMorgan Global China Summit in Shanghai, Dimon stated that a ‘hard landing’ for the U.S. economy cannot be ruled out. 

When CNBC’s Sri Jegarajah asked about this possibility, Dimon responded, ‘Could we actually see one? Of course, how could anyone who reads history say there’s no chance?’

Dimon says the worst case for the U.S. would be a stagflation

JPMorgan CEO stated that the worst outcome for the U.S. economy would be a ‘stagflation’ scenario, where inflation continues to rise while growth slows amid high unemployment. 

‘The worst outcome for all of us is stagflation: higher rates, recession. This would mean a decline in corporate profits, though the world has survived such conditions. I believe the odds of this happening are higher than many others think.’

However, Dimon also noted that ‘the consumer is still in good shape,’ even if the economy enters a recession. He highlighted that the unemployment rate has remained below 4% for about two years, and wages, home prices, and stock prices have risen.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts