Assessing a range of economic indicators, experts increasingly see risks ahead for the United States, warning of a downturn, a looming recession, or even stagnation. However, the American economy remains robust, defying dire predictions.
JPMorgan Chase CEO Jamie Dimon is among those with a pessimistic view. He is concerned that the US economy could be in for a repeat of the stagflation seen in the 1970s. “Yes, I think there's a chance that can happen again,” Dimon said.
The head of the investment bank highlighted a number of factors dominating the economy at that time. In particular, he outlined stagflation, a condition characterized by a combination of stagnant economic growth and elevated inflation.
Earlier, analysts at JPMorgan Chase warned of the risks threatening to cripple the stability of the American economy. Experts fear that inflation could spike again. In addition, further developments in the Federal Reverse’s monetary policy remain in question. According to Dimon, the US central bank is ready for a broad range of interest rates, from 2% to 8% or even higher, if it is necessary to fight stagflation.
At the same time, Fed Chairman Jerome Powell and several other policymakers have recently outlined their position on interest rates. They have acknowledged that the key rate may stay high for longer than expected in the face of stubborn inflation in the United States.