Thursday, May 23, 2024

Ads by Google

Ads by Google

HomeNewsUS recession possible? JPMorgan’s Jamie Dimon says not ‘off the table’. Explains

US recession possible? JPMorgan’s Jamie Dimon says not ‘off the table’. Explains

Mar 12, 2024 02:18 PM IST

JPMorgan Jamie Dimon on US recession: He said that economic indicators have been distorted by Covid-19.

American billionaire banker Jamie Dimon said that possibility of recession in the US is not “off the table” but the Federal Reserve should wait before it cuts interest rates. Chairman and Chief Executive Officer (CEO) of JPMorgan Chase said, “The world is pricing in a soft landing, at probably 70-80%. I think the chance of a soft landing in the next year or two is half that. The worst case would be stagflation.”

JPMorgan Chase CEO and Chairman Jamie Dimon reflected on whether US recession is possible or not. (Reuters)
JPMorgan Chase CEO and Chairman Jamie Dimon reflected on whether US recession is possible or not. (Reuters)

Read more: Nvidia’s Jensen Huang on his role as CEO and what he finds exhausting at work

Reflecting on how economic indicators have been distorted by Covid-19, he said that he takes them with “a grain of salt” because of which the Fed should wait for more clarity before lowering interest rates.

Hindustan Times – your fastest source for breaking news! Read now.

“They can always cut quickly and dramatically. Their credibility is a bit at stake here,” he said, adding, “Unemployment in the United States is very low at the moment, wages continue to go up.”

Read more: Paytm Payments Bank deadline: Services you can use after March 15

The US economy was “kind of booming” currently but the risk of a recession remained, he said in comments which are from a sharp divergence from his views less than two years ago when central banks first started tightening interest rates.

Read more: Meta CTO on working at Facebook in its early days: ‘Was tougher for Mark Zuckerberg’

In 2022, Jamie Dimon warned that a “hurricane” was about to hit the US economy. But Federal Reserve Chair Jerome Powell last week suggested that the central bank is getting close to the confidence that it needs to start lowering interest rates.

“We’re waiting to become more confident that inflation is moving sustainably at 2%. When we do get that confidence — and we’re not far from it — it’ll be appropriate to begin to dial back the level of restriction,” Jerome Powell said.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it’s all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs

  • ABOUT THE AUTHOR
    author-default-90x90

    Follow the latest breaking news and developments from India and around the world with Hindustan Times’ newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we’ve got you covered.