The CEO of the nation’s largest bank said economic risks remain significant.
A booming job market, softening inflation, robust growth — the economy has performed well by just any measure but the chief executive of the nation’s largest bank is worried the U.S. still remains on the brink of a downturn.
Jamie Dimon, the CEO of JPMorgan Chase, issued a sober economic forecast in his annual shareholder letter on Monday, warning that high inflation may prove more stubborn than expected, triggering rate hikes at the Federal Reserve and an eventual recession.
The billionaire financier also offered up a sweeping assessment of artificial intelligence and waded into an ongoing controversy over diversity, equity and inclusion.
Here are four takeaways from Dimon’s annual shareholder letter:
Dimon acknowledged strong economic performance of late but cautioned of long-term trends that could undermine the gains. He raised special alarm about the economy’s top threat: inflation.
Inflation has fallen significantly from a peak of 9.1%, but it remains more than a percentage point higher than the Fed’s target rate of 2%.
A host of factors, including government spending and global trading shocks, could make the final leg of inflation’s path down to normal levels much more difficult than many observers expect, Dimon said.
Other trends keeping inflation higher, he added: ascendant military conflict and the loans required for the transition to a climate-friendly economy.
The risks posed by ongoing inflation imperil efforts to achieve a „soft landing,“ in which inflation returns to normal levels while the economy averts a recession, Dimon said.
