JPMorgan Chase CEO Jamie Dimon is worried about the possibility of “stagflation,” which is a period of slow economic growth, high unemployment, and high inflation. He mentioned the term at two separate events last week.
“I worry it looks more like the ’70s than we’ve seen before,” he stated at an event at the Economic Club of New York on Tuesday, per Fox Business. The U.S. experienced stagflation caused by a rise in oil prices in the 1970s.
Dimon also brought up the concern in an interview with the Associated Press on Friday at a Chase branch opening in the Bronx, New York, adding that he was “cautious” about the economy.
JPMorgan Chase is the largest bank in the U.S. with $3.4 trillion in assets.
While Dimon told the AP that he was “hopeful” for a soft landing, or an outcome that avoids a recession, he said he was “just a little more dubious than others that a [soft landing] is a given.”
Jamie Dimon, chairman and chief executive officer of JPMorgan Chase & Co., speaks during an Economic Club of New York. Photographer: Victor J. Blue/Bloomberg via Getty Images
Dimon’s comments come as inflation rates are rising, moving away from the Federal Reserve’s target of 2%. A March consumer price index report from the U.S. Bureau of Labor Statistics recorded that the annual inflation rate was 3.5%, the highest level since September 2023. Rising gasoline and housing costs drove the increase.
The average U.S. household is paying $227 more per month for necessities compared to one year ago.
Related: CPI Report: Inflation Rose More Than Expected in March, Driven By Housing and Energy Costs
At the same time, BLS data showed that average hourly earnings increased by only 0.6%.
Dimon’s remarks also align with a Thursday Commerce Department report showing that U.S. economic growth slowed from January through March.
The report recorded that gross domestic product (GDP) increased by 1.6%, below analyst expectations of 2.4%.
Related: JPMorgan Says Its AI Cash Flow Software Cut Human Work By Almost 90%
Still, while higher inflation and slower economic growth seem to be happening, the third part of stagflation (high unemployment), isn’t seen in the numbers yet.
April BLS data showed that the unemployment rate fell from 3.9% in February to 3.8% in March. The same report indicated that job postings increased more than expected, especially in the healthcare, government, and construction sectors.
