Jamie Dimon doesn't rule out recession down the road as inflation saps consumer confidence

By Steve Gelsi

JPMorgan chief executive remains cautious about a possible unexpected dip in the economy

'The consumer is in pretty good shape. However, their confidence levels are low, and that seems to be mostly because of inflation.'Jamie Dimon, chief executive of JPMorgan Chase & Co.

JPMorgan Chase & Co. Chief Executive Jamie Dimon said consumers continue to worry about inflation even as the stock market hits record highs and some economic indicators remain bullish.

The longtime CEO of the megabank (JPM) said tailwinds such as low unemployment, record stock prices, wage increases and the rising value of homes have benefited the economy, but higher prices continue to weigh on sentiment.

"The consumer is in pretty good shape," Dimon said in an interview with CNBC-TV early Thursday. "However, their confidence levels are low, and that seems to be mostly because of inflation."

While financial markets mostly remain in rally mode, Dimon wouldn't rule out a recession or an unexpected dive, and he agreed a that hard landing for the U.S. economy is a possibility.

"There are a lot of things out there which could drive inflation. Not today. I'm talking about 12 months or 24 months from now," Dimon said.

Also read: Jamie Dimon sees 'happy talk' driving markets as he maintains cautious view

Inflationary factors in the global economy include remilitarization, restructuring of trade, fiscal spending, the green economy and higher prices for commodities such as copper, he said.

Also read: Copper prices to quadruple on surging green demand, legendary oil trader Pierre Andurand says

It's important not to put too much emphasis on monthly data points such as the consumer-price index in predicting longer-term outcomes, Dimon said.

"If you look at the actual data now that gets calculated, it is completely distorted by a million different things," he said.

Also read: Jamie Dimon praises House leaders for Ukraine, Israel aid deal, but flags difficulty of getting anything done in the U.S.

-Steve Gelsi

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05-24-24 1517ET

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