JPMorgan Chase CEO Jamie Dimon issued a stark warning to Wall Street on Wednesday: Inflation could rise further and recession is not off the table.
“A lot of things out there are dangerous and inflationary. Be prepared,” he said at the 2023 New York Times DealBook Summit in New York. “Interest rates may go up and that might lead to recession.”
Governments across the globe need more money, he said, to fund the green economy, remilitarize and to address energy crises — and that will all be inflationary.
“I’m cautious about the economy,” he said. The labor market in the United States has been resilient, but “inflation is hurting people.”
Stimulus money handed out during Covid shutdowns and quantitative easing by the Federal Reserve had injected “drugs directly into our system” and caused an economic “sugar high,” said Dimon. But that’s fading, he said. “I think quantitative easing and tightening and these geopolitical issues can bite,” he said.
In previous interviews, Dimon has said that the Fed may be far from finished with its aggressive regimen of interest rate hikes in the fight against elevated inflation, and that it’s possible the central bank will continue hiking rates by another 1.5 percentage points, to 7%.
This story is developing and will be updated.
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