JPMorgan Chase & Co CEO Jamie Dimon has reiterated his prediction of a looming recession in the U.S. economy, despite the current economic stability.
What Happened: Dimon maintained that the odds of a “soft landing” for the U.S. economy are around 35% to 40%, making a recession the most likely scenario, in an interview with CNBC on Wednesday. He also expressed skepticism about the Federal Reserve’s ability to bring inflation down to its 2% target.
“There’s a lot of uncertainty out there,” Dimon said. “I’ve always pointed to geopolitics, housing, the deficits, the spending, the quantitative tightening, the elections, all these things cause some consternation in markets.”
Dimon, who leads the largest U.S. bank by assets, has been warning of an economic “hurricane” since 2022. Despite the economy holding up better than expected, Dimon noted that credit-card borrower defaults are rising. However, he stated that America is not currently in a recession.
"There's always a large range of outcomes," Dimon said. "I'm fully optimistic that if we have a mild recession, even a harder one, we would be okay. Of course, I'm very sympathetic to people who lose their jobs. You don't want a hard landing."
Why It Matters: Dimon’s prediction of a recession comes amid conflicting views on the state of the U.S. economy. Despite recent market turmoil, Dimon expressed confidence in the economy, stating that “we’re going to get through it.”
Other experts have also weighed in on the state of the economy. Economist Claudia Sahm refuted claims of a recession in the U.S. economy, emphasizing that the current economic cycle is unusual, and traditional indicators may not accurately reflect the situation.
Similarly, veteran Wall Street investor Ed Yardeni opposed fears of a U.S. recession, arguing that a weak July employment report does not indicate a recession.
Meanwhile, CNBC host Jim Cramer offered a reassuring perspective, suggesting that the current corporate earnings do not indicate an impending recession.
Read Next: Mortgage Rates Fall To 15-Month Lows, Boost Homebuyer Demand As Federal Reserve Hints At Rate Cuts
Image Via Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
