JPMorgan Chief Executive Jamie Dimon said on Wednesday that he still thinks the chance of a “soft landing” for the U.S. economy is about 35% to 40%, making a recession the most likely scenario for him.
When asked by CNBC’s Leslie Picker whether he had changed his mind about the market’s overly optimistic view of the risk of a recession earlier this year, Dimon said the likelihood was “about the same as his previous forecast.” ”.
“There’s a lot of uncertainty out there,” Dimon said. “I always point to geopolitics, housing, deficits, spending, quantitative tightening, elections, all of these things can cause panic in the market.”
Dimon, the leader of the nation’s largest bank by assets and one of Wall Street’s most respected voices, has warned of an economic “hurricane” starting in 2022. Meng said on Wednesday that the U.S. is not currently in recession, although credit card borrower defaults are rising.
Dimon added that he was “a little skeptical” the Fed could get inflation down to its 2% target because of future spending on the green economy and military.
“The results are always varied,” Dimon said. “I’m completely optimistic that if we have a mild recession, or even a more severe recession, we’ll be fine. Of course, I have a lot of sympathy for people who have lost their jobs. You don’t want a hard landing.”
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