On the evening of the 1st Beijing time, Jamie Dimon, chief executive of JPMorgan Chase, said he expected the Fed to reduce inflation without causing a recession, but did not rule out more disturbing possibilities such as stagflation.
Mr Dimon said he was "cautious" about the US economy, adding that inflation could become more sticky for a longer period of time and that "it is also possible for the US economy to fall into stagflation".
Damon said: "MspacmanarcadegameYou should be worried (about the possibility of stagflation). "
Dimon stressed that he still "expects" the US economy to experience a soft landing: although growth is slowing and inflation is still a bit high, the economy can still avoid recession. But Dimon said he was not sure whether this was the most likely outcome.
"I'm just more skeptical than anyone else that a soft landing is going to happen," he said. "
After inflation reached its highest level in 40 years, the Fed quickly raised interest rates in 2022 and 2023. Fed officials said they expected to start cutting interest rates at some point, but the Fed's cut timetable has been repeatedly delayed because inflation is still well above the central bank's target rate of 2 per cent.
