JPMorgan Chase CEO has laid out the “worst outcome” for America’s economic future, beyond recession.
“The worst outcome is stagflation,” said Dimon. “And by one of the simplest ways, I’d not take it off the table.”
68-year-old Jamie Dimon made his remarks on Tuesday on the Council of Institutional Investors in Latest York.
INFLATION RISES 2.5% IN AUGUST, LESS THAN EXPECTED
JPMorgan Chase is an important bank in america according to Bankrate, with $3.4T in assets.
Stagflation, a portmanteau of stagnation and inflation, refers to a state where economic growth slows while inflation and unemployment rise.
The economic consequences of stagflation may cause retirement savings to go down along with the stock market to crash; it was last seen inside the U.S. in the midst of the Seventies, according to Investopedia.
While inflation in August grew lower than expected at 2.5%, the outlook for the federal debt is bleak, with the growing number measuring $35,309,184,612,870.00 as of September 12.
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Interest payments due in October on the national debt now exceed the costs of every Medicare and the national defense budget. National debt may contribute to further inflation on the horizon.
That’s the primary time in American history that interest payments on the national debt have risen above $1T.
“So, it’s hard to check out [it] and say, ‘Well, no, we’re out of the woods.’ I don’t think so,” said Dimon.
JPMorgan shares have gained over 18% this yr, inline with the S&P 500’s rise.
Original article source: CEO of JPMorgan warns US of economic fate worse than recession: ‘The worst outcome’