2 Minute reading
Administrative director JP Morgan Chase & Co (NYSE:JPM), Jamie DimonIt expressed concern over the possibility of the US economy experiencing a “hard landing”. Worst case.
Get notified of the latest news, articles and more!
What happened
Speaking at JPMorgan’s China Global Summit in Shanghai, Dimon raised the possibility of a sharp downturn in the US economy. reported CNBC. He noted that a “hard landing” cannot be ruled out given historical patterns.
Dimon outlined the worst possible outcome for the U.S. economy, a stagnant scenario where inflation continues to rise but growth slows amid high unemployment.
Despite these concerns, Dimon noted that despite the economy falling into recession, consumers are still in good shape.
You can also read: Meta considers a paid version of Meta AI
Dimon highlighted the unemployment rate, which has been below 4% for nearly two years, and rising wages, home prices and stock prices, according to CNBC.
However, the 68-year-old bank boss noted that consumer confidence levels are low, mainly due to inflation. It warns that the world is not adequately prepared for hyperinflation.
Because it matters
Dimon’s comments came after the US Federal Reserve indicated that raising interest rates was necessary to control inflation. This is likely to slow down the economy.
Dimon’s comments also come amid China’s rise in global economic influence. Speaking at the summit, he also emphasized the importance of China in the global economy. He emphasized one thing CEO of JP Morgan APAC, Sjord Lennard.
Dimon’s warning of a possible “hard landing” for the U.S. economy and the possible impact of stagnation adds to the growing economic uncertainty, especially in light of the continuing Central bank worries about inflation.
This content is produced in part with the help of AI tools and is reviewed and published by Benzinga editors.
Image courtesy of Dustin Blichock and Shutterstock.
For more updates on this topic, turn on notifications Benzinga España Or follow us on our social networks: X Y Facebook.
