JPMorgan Chase CEO Jamie Dimon mentioned Wednesday he nonetheless believes that the chances of a “mushy touchdown” for the U.S. economic system are round 35% to 40%, making recession the almost definitely state of affairs in his thoughts.
When CNBC’s Leslie Picker requested Dimon if he had modified his view from February that markets had been too optimistic on recession dangers, he mentioned the chances had been “about the identical” as his earlier name.
“There’s a number of uncertainty on the market,” Dimon mentioned. “I’ve at all times pointed to geopolitics, housing, the deficits, the spending, the quantitative tightening, the elections, all these items trigger some consternation in markets.”
Dimon, chief of the largest U.S. financial institution by property and some of the revered voices on Wall Avenue, has warned of an financial “hurricane” since 2022. However the economic system has held up higher than he anticipated, and Dimon mentioned Wednesday that whereas credit-card borrower defaults are rising, America isn’t in a recession proper now.
Dimon added he’s “slightly little bit of a skeptic” that the Federal Reserve can carry inflation right down to its 2% goal due to future spending on the inexperienced economic system and navy.
“There’s at all times a wide range of outcomes,” Dimon mentioned. “I am absolutely optimistic that if we have now a gentle recession, even a tougher one, we might be okay. After all, I am very sympathetic to individuals who lose their jobs. You do not need a tough touchdown.”
