JPMorgan Chase CEO Jamie Dimon said Wednesday he still believes 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 his view.
When asked by CNBC’s Leslie Picker if he had changed his stance from February, where he suggested markets were too optimistic about recession risks, Dimon responded that the odds remained “about the same” as his earlier assessment.
“There’s a lot of uncertainty out there,” Dimon explained. “I’ve always pointed to geopolitics, housing, the deficits, the spending, the quantitative tightening, the elections, all these things cause some consternation in markets.”
As the leader of the largest U.S. bank by assets and a highly respected voice on Wall Street, Dimon has warned of an economic “hurricane” since 2022. Despite this, the economy has performed better than he anticipated. While acknowledging that credit-card borrower defaults are rising, Dimon stated that America is not currently in a recession.
Dimon expressed skepticism about the Federal Reserve’s ability to bring inflation down to its 2% target, citing future spending on the green economy and military as potential obstacles.
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