After resolving complex legal issues tied to JPMorgan Chase’s connection with the late convicted pedophile Jeffrey Epstein, CEO Jamie Dimon has resumed his role as one of the leading voices on the U.S. economy.

However, his outlook remains cautious, warning that the country still faces significant economic challenges.

Dimon recently spoke at the Council of Institutional Investors in New York, where he outlined his concerns for the nation’s economic future, issuing a stark warning that the worst scenario may be more severe than a recession.

According to Yahoo Finance, Dimon said, “The worst outcome is stagflation. And by the way, I wouldn’t take it off the table.”

As the head of JPMorgan Chase, the largest bank in the U.S., Dimon’s opinions carry significant weight. His mention of stagflation—a combination of stagnant economic growth, rising inflation, and high unemployment—has raised alarms.

The last time the U.S. experienced stagflation was in the 1970s, a period marked by economic hardship that saw a sharp decline in retirement savings and a crash in the stock market.

While inflation in August was lower than expected at 2.5%, the country’s financial outlook remains troubling. The national debt has ballooned to $35 trillion as of September 12, with interest payments surpassing the costs of both Medicare and national defense.

“This is the first time in American history that interest payments on the national debt have risen above $1 trillion,” Dimon noted. “So, it’s hard to say we’re out of the woods. I don’t think so.”

Dimon’s warning underscores the potential for further inflation and financial instability, leaving many to worry about the future of the U.S. economy.

CNBC reported:

“The chief executive of the largest U.S. bank makes his comments at a time when investors are turning their attention to signs of slowing growth. Recent readings showed pricing pressures increasingly on their way to the Federal Reserve’s 2% inflation target, but reports on employment and manufacturing have revealed some signs of softening.”

Dimon worries that of inflationary forces such as higher deficits and increased infrastructure spending will add pressure to an economy that is still reeling from the impact of higher interest rates.

“The bank leader has previously warned of an economic slowdown. In August, he said the odds of a ‘soft landing’ were around 35% to 40%, implying a recession is the more likely outcome.”

Source