'I Shouldn't Ever Use The Word Hurricane,' Jamie Dimon Says: Storm Clouds Remain, But The Consumer Is Rolling With The Thunder

In the middle of last year, JP Morgan Chase & Co JPM CEO Jamie Dimon warned of an economic "hurricane." Just last month, Dimon predicted that inflation would "derail the economy" and cause a recession in mid-2023. On Tuesday, the JPMorgan CEO walked back his forecast.

What Happened: According to a Fox Business report, data points to the consumer still being strong, Dimon said in an interview aired Tuesday on Fox Business' "Mornings with Maria."

"I shouldn’t ever use the word hurricane, but ... there were storm clouds," Dimon said.

Despite a hawkish Federal Reserve and an uncertain economic environment, consumers continue to show strength, the JPMorgan CEO said.

"Their balance sheets are in good shape. They’re spending 10% more than pre-COVID. They have more in their checking account, companies are in good shape, and that’s driving a strong economy," Dimon said.

Dimon told Fox Business that he has been consistent in his message, but the level of uncertainty surrounding his outlook has increased.

"It’s heightened because of Russia, Ukraine, oil, energy, food, quantitative tightening," Dimon said.

Dimon indicated that the aforementioned uncertainties could mitigate and a recession could be on the mild side.

"But they may not. So, I’m still on the cautious side," he said.

Related Link: Why The 'Flawless' Recession Indicator May Be Wrong This Time

The Fed's fight against historically high inflation has been the main cause of investor concern. CPI data fell significantly in November and the central bank responded by raising rates 0.5%, down from the 0.75% hikes the Fed issued in the previous four meetings. 

The November meeting minutes, which were released last week, showed that inflation remained a top priority for the Fed. The central bank reaffirmed its 2% inflation goal and discussed risks associated with a potential pivot.

The Labor Department is set to release CPI data for December on Thursday at 8:30 a.m. ET. The SPDR S&P 500 SPY is likely to be volatile leading up to and following the release.

SPY Price Action: Dimon has previously moved markets with his forecasts, but the SPY is trading relatively flat on Tuesday.

The SPY was up 0.20% at $388.62 at the time of publication, according to Benzinga Pro.

Photo: Steve Jurvetson from flickr.