Current:Home > InvestJPMorgan’s Dimon says stagflation is possible outcome for US economy, but he hopes for soft landing -GrowthInsight
JPMorgan’s Dimon says stagflation is possible outcome for US economy, but he hopes for soft landing
Benjamin Ashford View
Date:2025-04-11 10:37:14
NEW YORK (AP) — JPMorgan CEO Jamie Dimon says stagflation could be one of a number of possible outcomes for the U.S. economy as the Federal Reserve attempts to tame stubbornly high consumer prices.
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 it’s 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.
veryGood! (21)
Related
- Person accused of accosting Rep. Nancy Mace at Capitol pleads not guilty to assault charge
- Cyprus hails Moody’s two-notch credit rating upgrade bringing the country into investment grade
- Missing inmate who walked away from NJ halfway house recaptured, officials say
- Over 93,000 Armenians have now fled disputed enclave
- Macy's says employee who allegedly hid $150 million in expenses had no major 'impact'
- Video provides first clear views of WWII aircraft carriers lost in the pivotal Battle of Midway
- New York City flooding allows sea lion to briefly escape Central Park Zoo pool
- Duke's emergence under Mike Elko brings 'huge stage' with Notre Dame, ESPN GameDay in town
- South Korean president's party divided over defiant martial law speech
- Backers of North Dakota congressional age limits sue over out-of-state petitioner ban
Ranking
- Selena Gomez engaged to Benny Blanco after 1 year together: 'Forever begins now'
- Baltimore Archdiocese says it will file for bankruptcy before new law on abuse lawsuits takes effect
- Disney, DeSantis legal fights ratchet up as company demands documents from Florida governor
- Angels star Shohei Ohtani finishes with the best-selling jersey in MLB this season
- See you latte: Starbucks plans to cut 30% of its menu
- Jessica Campbell, Kori Cheverie breaking barriers for female coaches in NHL
- Allison Holker Honors Beautiful, Sweet Stephen tWitch Boss on What Would've Been His 41st Birthday
- Jimmy Carter admirers across generations celebrate the former president’s 99th birthday
Recommendation
Trump's 'stop
Suspect arrested in connection with fatal drive-by shooting of Tupac: Official
New York flooding live updates: Heavy rains create chaos, bring state of emergency to NYC
Duane Keffe D Davis charged with murder in Tupac Shakur's 1996 drive-by shooting death
Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Triathlon
Jon Rahm responds to Brooks Koepka's accusation that he acted 'like a child' at the Ryder Cup
Pearl Harbor fuel spill that sickened thousands prompts Navy to scold 3 now-retired officers in writing
Turkey’s premier film festival is canceled following a documentary dispute