JPMorgan CEO Jamie Dimon He said on Wednesday that he still believes the probability of a “soft landing” for the U.S. economy is about 35% to 40%, making a recession the most likely scenario in his mind.
In an interview with CNBC Leslie Peake if he changes his mind earlier this year Dimon said the market was overly optimistic about the risk of a recession and that the likelihood was “about the same” as he had previously predicted.
“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 is the leader of the largest U.S. bank by assets and one of the most respected voices on Wall Street. warn Dimon 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.”
