During an interview with Bloomberg on Monday, JPMorgan CEO Jamie Dimon stated that he believes there is a “good chance” that inflation will not decline enough by the fourth quarter, and things like infrastructure spending, the Inflation Reduction Act, bringing trade back into the U.S., and the green transition “have inflationary attributes” and bigger trends “are inflationary.” Morgan also stated that while avoiding a recession and bringing down inflation is doable, there’s also a chance of a mild recession or worse.
Dimon said that there could be a “soft landing” but “a mild recession’s possible, a harder recession is possible. I think there’s a good chance that inflation will come down, but not enough by the fourth quarter. The Fed may actually have to do more. And I think a lot of things that have happened in the world, think of bigger trends, are inflationary. Infrastructure spending, the [Inflation Reduction Act], lessening trade with certain parts of the world, bringing trade back into America, those things are all — the green transition’s going to take a lot of capital. So, all of those things kind of have inflationary attributes that are very different than we’ve been through the last 20 years.”
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