Investing.com — The possibility of a “hard landing” for the U.S. economy cannot be ruled out, according to Jamie Dimon, CEO of JPMorgan Chase & Co. (NYSE:).
In an interview with business news channel CNBC, Dimon argued that “anyone who studies history” cannot rule out a scenario in which the U.S. enters a recession after its recent period of growth.
Dimon told CNBC that the worst outcome for the world’s largest economy would be “stagflation,” a condition in which growth slows and unemployment remains high while inflation continues.
But he said that for now, American consumers are “well positioned” to weather the effects of the economic slowdown.
The comments came after Dimon warned at an event in New York earlier this week that he was “cautiously pessimistic” about the broader economic outlook due to stubborn price pressures and geopolitical tensions.
Minutes from the Federal Reserve’s latest meeting, released on Wednesday, showed central bank policymakers believe elevated inflation will only slowly decline to the 2% target.
While recent data suggests inflation is subsiding, several Fed officials have said they still want to see more evidence that inflation is sustainable before opening up the possibility of further rate cuts.
