Jamie Dimon says soft landing is possible, but ‘scary things’ lie ahead

  • JPMorgan CEO Jamie Dimon believes a soft landing is still possible, but there are a few uncertainties.
  • “We have something terrible in front of us. And you and I know that there is always uncertainty,” he told CNBC.
  • He pointed to the Fed’s quantitative tightening and “Russia, Ukraine, oil, gas, war, migration, trade, China.”

JPMorgan CEO Jamie Dimon said he believes a soft landing is still possible, but warned that the economy is facing a number of uncertainties.

In an interview with CNBC, he added that America’s largest bank has a recession scenario, but has not yet put it into practice.

“The US economy is in good shape right now. Consumers have a lot of money, they spend it, there are plenty of jobs,” Dimon said.

It’s also “unbelievable” that wages for low-income workers are rising after decades of virtually no real wage increases, he added.

“This is amazing. It is today. We have something scary ahead of us, and you and I know that there is always uncertainty,” Dimon said. “It’s a normal thing.”

However, he acknowledged that the level of economic uncertainty is higher than usual amid potential headwinds such as the Federal Reserve’s quantitative tightening and “Russia, Ukraine, oil, gas, war, migration, trade, China.”

And it may be some time before the US sees a return to the 2% inflation rate, he said. Consumer inflation in January amounted to 6.4% year on year.

The Federal Reserve may have lost control of inflation, Dimon noted, as massive government borrowing and spending — such as in the form of green investment and the Infrastructure Act — exacerbate the inflationary environment.

“I think we all need to adjust to this. You know, we will have more interest rate normalization and everything will be fine,” he said. “Just remember: America is the most prosperous place on the planet. We’ll be fine.”

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