JPMorgan Chase CEO Jamie Dimon has said that the U.S. economy is slowing down, though he does not consider the situation a “disaster.”
Speaking to CNBC, Dimon noted that he maintains a more cautious perspective on inflation than many other analysts, highlighting that “there is a lot of conflicting data which is not perfect.”
He suggested that price growth may remain persistent, pointing to “the global deficits around the world,” which could create an “inflationary effect.” Dimon also warned that “the remilitarization of the world,” along with shifts in trade patterns, might further push prices higher.
Adding to potential inflationary pressures, Dimon cited the introduction of a $100,000 fee for H-1B visas in the U.S., which could elevate standard wages and keep inflation elevated.
Investors will get more clarity on U.S. inflation on Friday, when the personal consumption expenditures (PCE) price index is released. The Federal Reserve relies on this measure as a key gauge of price growth when setting monetary policy. Consumer prices rose 2.9% in August, well above the Fed’s 2% target.
Last week, the Fed reduced interest rates by 25 basis points and provided updated forecasts, indicating that many officials expect an additional half-point in cuts to help support the labor market. Yet seven of the 19 estimates in the Fed’s closely watched “dot plot” projected fewer cuts this year, with one even suggesting rates remain at the current 4.25%–4.5% range through the end of 2025.
Fed Chair Jerome Powell described the latest rate reduction as a form of “risk management,” balancing the dual challenges of a slowing labor market and persistent inflation. Powell is scheduled to provide further insight on the future path of rates during a speech on Tuesday.
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