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JPMorgan Chase CEO and Chairman Jamie Dimon cocks his head

Photograph: Evelyn Hockstein (Reuters)

Two years after warning that a ‘‘hurricane’’ could hit the U.S. economy, JPMorgan Chase CEO Jamie Dimon re-upped his considerations Tuesday a couple of potential recession within the U.S. He mentioned the potential for a recession just isn’t “off the desk” and that the Federal Reserve should hold off on cutting interest rates for now. Dimon made the remarks at the Australian Financial Review Business Summit in Sydney.

“The world is pricing in a delicate touchdown, at in all probability 70-80%,” he informed the summit by way of video hyperlink, referring to when inflation comes down and not using a painful rise in unemployment. “I feel the prospect of a delicate touchdown within the subsequent yr or two is half that. The worst case could be stagflation.”

Dimon’s skepticism about financial indicators and rates of interest

Dimon mentioned he was unsure about present financial indicators and prompt that the Fed look ahead to extra info earlier than reducing rates of interest. The central financial institution final yr raised its benchmark Federal Funds Price to five.5%, which makes loans dearer for debtors. Economists are expecting the Fed to lower interest rates in June for the primary time because it began climbing them in 2022 to combat rising inflation, which has since cooled however not returned all the best way to pre-pandemic ranges.

Dimon’s ‘hurricane’ that didn’t come

Dimon has no less than some monitor document of being inconsistent and lacking the mark on the economic system and rising applied sciences. In mid-2022, he predicted {that a} ‘‘hurricane’’ would hit the economic system. He additionally has one thing of a love-hate relationship with blockchain know-how, which drives cryptocurrencies like Bitcoin. He as soon as mentioned blockchain is beneficial for exchanging property or knowledge, however in 2018, he called Bitcoin a fraud. Then in 2019, JPMorgan launched its own dollar-backed digital coin referred to as JPM Coin for funds between shoppers.

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