JPMorgan Chase CEO Jamie Dimon has just issued a serious warning about where he thinks the US economy is headed.
Speaking at the AllianceBernstein Strategic Solutions conference, Dimon said he believes out-of-control government spending is leading to stagflation - the dreaded combination of high inflation, high unemployment and low growth, Fortune reports.
I'm looking at the amount of fiscal and monetary stimulus enacted over the last 5 years. It's been so extraordinary. How can I say it won't lead to stagflation?
Maybe it won't, but I, for one, am quite prepared for it.
Speaking at the banking giant's global summit in Shanghai a week ago, Dimon told CNBC that he doesn't think the Fed has raised interest rates yet.
I'm looking at different scenarios, but, again, the worst outcome for all of us is what you call stagflation, rate hikes and recession. That means corporate profits are going to decline and we're going to go through all of that.
Dimon's economic forecast echoes a warning from Jpmorgan chief market strategist Marko Kolanovic a few months ago.
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