According to ChainCatcher, JPMorgan Chase CEO Jamie Dimon recently said that he does not rule out the possibility of stagflation, although people's confidence that inflation is beginning to ease is growing.
Dimon warned at the fall meeting of the Council of Institutional Investors in Brooklyn, New York, that despite signs of a cooling economy, serious risks remain. "I think the worst possible outcome is stagflation - a recession, higher inflation ... I wouldn't rule that out," he said. Dimon expressed concern about inflationary pressures that could persist, citing factors such as increased government spending and rising deficits. He noted that while inflation data are improving, indicators such as employment and manufacturing show that the economy is under pressure. "These are inflationary, basically in the short term, for the next few years," he warned. He stressed that despite some positive economic signals, there are still major uncertainties, and inflationary pressures could drag down the U.S. economy.
Dimon has been warning about a slowdown, noting in August that there was only a 35% to 40% chance of a "soft landing," suggesting a recession might be a more likely outcome. He cited geopolitical, housing and spending uncertainties. Meanwhile, JPMorgan Chase & Co. raised the odds of a U.S. recession this year.