Jamie Dimon maintains a 35-40% chance of a soft landing, citing market uncertainties
Jamie Dimon, CEO of JPMorgan Chase, stated on Wednesday that he believes the likelihood of a “soft landing” for the US economy remains around 35 to 40 percent.
He suggested that a recession is the most probable scenario, as reported by CNBC.
During an interview with CNBC’s Leslie Picker, Dimon confirmed that his view on recession risks had not changed since February, maintaining that markets remain overly optimistic.
He attributed this uncertainty to factors such as geopolitics, housing, deficits, spending, quantitative tightening, and upcoming elections, all of which contribute to market unease.
As the head of the largest US bank by assets and a highly respected figure on Wall Street, Dimon has been warning about an economic “hurricane” since 2022.
However, he acknowledged that the economy has performed better than he initially anticipated. Although credit-card borrower defaults are increasing, Dimon noted that the US is not currently in a recession.
Dimon expressed some skepticism regarding the Federal Reserve's ability to achieve its 2 percent inflation target, citing future expenditures on the green economy and military as potential obstacles.
“There’s always a large range of outcomes,” Dimon remarked. “I’m fully optimistic that if we have a mild recession or even a harder one, we would be okay. Of course, I’m very sympathetic to people who lose their jobs. You don’t want a hard landing.”
