Ever since America’s largest bank JPMorgan Chase got rid of the Jeffrey Epstein-linked string of lawsuits, its CEO Jamie Dimon has been able to fully reposition himself as one of the main economy commentators in the nation.
He has been a critical voice removed from the rosy-colored forecasts by some liberal economists, and has so far been proven right about it.
Now, Dimon is is concerned that the US economy could be in route to repeat the economic woes that held back the country during the 1970s.
There’s a chance that it can happen again, he said during an appearance Tuesday (23) at the Economic Club of New York.
But what is ‘it’? He is talking about stagflation, a combination of low growth and high inflation, and Dimon has made it clear that he believes such a risk exists again.
Yahoo Finance reported:
“‘I worry that it looks more like the ’70s than we’ve seen before’, he added during a question and answer session with Marie-Josée Kravis, chair of the Museum of Modern Art and wife of KKR co-founder Henry Kravis. ‘There are circumstances in which it’ll look more like the ’70s than what we’ve had for the last 20 years’.”
Dimon has been warning of ‘stickier inflation and higher rates than markets expect’.
And now, even Fed Chair Jerome Powell nixed any rate cuts and alerted they will stay elevated for longer because of unrelenting inflation.
“Dimon said in his April 8 letter that the bank is prepared for interest rates ‘from 2% to 8% or even more’ — and he repeated that prediction Tuesday. ‘We would handle stagflation too’, he added.”
JPMorgan Chase posted profits 6% higher than the previous year, it is suffering from ‘deposit margin compression and lower deposit balances’.
“Dimon returned to some other familiar subjects during his discussion Tuesday, including his concerns about large amounts of government spending and efforts by the Fed to shrink its balance sheet, as well as the ongoing wars in the Middle East and Ukraine and their potential to disrupt essential commodities markets, migration, and geopolitical relationships.”
In his speech in the Economic Club of New York, Dimon was in no way a ‘doom and gloom’ prophet, as he described the US economy as “booming”, celebrated the American consumers, US bank credit, home prices, and stock prices.
“Economic growth, he said, is key to solving any number of problems. ‘We need to do more and better, and that’s why we need to grow the economy’, he said.
[…] He didn’t drop any hints about when he might leave JPMorgan, saying only that he wants to ‘leave behind’ a ‘great company’ and ‘I want to help my country. I am very excited about the future’.”
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The post STAGFLATION? JPMorgan Chase CEO Dimon Fears US May Be Heading back to 1970s’ Economic Woes appeared first on The Gateway Pundit.
