JPMorgan Chief Issues Stark Warning on Recession

Contact Your Elected Officials
The Epoch Times Header

Jamie Dimon, CEO of JPMorgan Chase, has warned that inflation could go up again, leading to higher interest rates and—possibly—recession.

JPMorgan CEO Jamie Dimon has warned that inflation could accelerate again and that a recession could well materialize if the Federal Reserve takes interest rates higher in response to resurging price pressures.

“A lot of things out there are dangerous and inflationary. Be prepared,” Mr. Dimon said at the 2023 New York Times DealBook Summit in New York on Nov. 29, during which he said that geopolitical tensions and the energy transition were prompting governments to ramp up spending, which is inflationary.

A new inflationary spike would pressure the Fed to raise interest rates further, which would have a cooling effect on the economy.

“Interest rates may go up, and that might lead to recession,” Mr. Dimon said, while expressing caution about the economy, especially the effect that inflation has had on U.S. households.

Like other business leaders before him, Mr. Dimon said that stimulus cash doled out during the COVID-19 pandemic bolstered consumer spending and propped up the economy, but its effects are fading.

He added that the Fed’s fast pace of raising interest rates (which went from zero to more than 5 percent at the quickest pace since the 1980s), along with a reversal of its quantitative easing program, were squeezing the economy and consumers.

So far, there’s been a limited effect of higher interest rates and geopolitical tensions on U.S. consumers, who have continued to spend despite signs of an economic slowdown.

Consumer spending is a key driver of the economy, accounting for roughly two-thirds of economic output.

‘Most Dangerous Time’ In Decades Is Here

Earlier, Mr. Dimon sounded the alarm that U.S. consumers were running down their excess cash buffers while issuing a somber warning that “the most dangerous time” the world has seen in decades has arrived.

While warning of clouds on the horizon of consumer spending, “extremely” high government debt levels, and the largest peacetime fiscal deficits in U.S. history, Mr. Dimon said in mid-October that he sees a growing risk that inflation stays high and that the Fed will raise interest rates even higher.

By Tom Ozimek

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Transitioning from Regulatory Sclerosis to Arbitrary State Capitalism

The Trump administration is moving from reducing the size and regulatory power of the federal government to the formation of State Capitalism.

Gen Z and Crystallized Intelligence

We’ve created a new malaise: media fatigue and information overload, or “data smog,” which has sharply accelerated in recent years.

Meet the Fairy From Hell in Charge of Vaccines at CDC Until Last Week

Picture the creepiest leather-daddy gimp at your local Pride™ festival. That’s this guy, Demetre Daskalakis, who ran the entire federal govt vaccine program.

The Clinton-Epstein Connection We Did Not Know

One attorney's inside info about D.C. and the relationship the Clinton’s had with the late child sex pedophile Jeffrey Epstein

Faith under fire

Over half of history’s 70M Christian martyrs were killed in the 20th century, amid totalitarian regimes, purges, and ethnic violence.

Unqualified Secret Service Snipers Protected President, Inspector General Finds

Secret Service snipers who worked at events involving President Biden in 2024 failed to complete annual requirements showing they can hit targets.

Grand Jury Declines to Indict Woman Who Threatened Trump

A grand jury has declined to indict a woman who threatened President Donald Trump on social media, her lawyers said on Sept. 1.

Trump Admin Violated Law With Troop Deployment in LA, Judge Rules

A federal judge in California has ruled that the Trump administration unlawfully used Marines and National Guard troops in Los Angeles.

Kentucky Ends In-State College Tuition for Illegal Immigrants After DOJ Lawsuit

Kentucky agreed to end a policy that had allowed illegal immigrants to access in-state college tuition rates, following a lawsuit by the DOJ.

Trump Announces Space Command Moving to Alabama

“I am thrilled to report that the U.S. Space Command headquarters will move to beautiful Huntsville, Alabama,” President Trump said.

Trump Takes Aim at Crime in Chicago After Dozens Shot Over Weekend

President Trump said that he will “soon” take actions to deal with crime in Chicago, weeks after he sent National Guard troops to Washington, D.C.

Trump Says India Offered Zero Tariffs After Decades of ‘One-Sided’ Trade

President Trump said India offered to cut tariffs on U.S. goods to zero, calling it a long-overdue fix for decades of one-sided trade.

Trump Says He Will Issue Executive Order to Require Voter ID

“Voter I.D. Must Be Part of Every Single Vote. No exceptions!” Trump wrote on a post on Truth Social. “I Will Be Doing An Executive Order To That End!!!”
spot_img

Related Articles

Popular Categories

MAGA Business Central