JPMorgan Chase CEO warns of risks of U.S. recession, rising inflation, and stagflation

Jamie Dimon, CEO of JPMorgan Chase, said recently that he would not rule out the possibility of stagflation, even though confidence is growing that inflation is starting to ease. 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 outcome is stagflation - recession, higher inflation... I wouldn't rule it 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 is 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 weigh on the U.S. economy. Dimon has been warning about a slowdown, noting in August that the probability of a "soft landing" was only 35% to 40%, suggesting that a recession might be a more likely outcome. He pointed to various uncertainties such as geopolitics, housing and spending. Meanwhile, JPMorgan Chase has raised the odds of a U.S. recession this year. (Bitcoin.com)