JP Morgan Analyst Issued Warning on US ‘Stagflation’

An official with JPMorgan Chase warned that while U.S. stocks hit record highs recently, that momentum may not continue and will raise risks of a 1970s-style “stagflation” scenario. A chief market strategist with the top U.S. bank, Marko Kolanovic, warned there appears to be too much optimism about the current market. The Federal Reserve has continued to keep interest rates high, while inflation numbers reported for January 2024 came in higher than anticipated. For the past several months, analysts at other top banks such as Goldman Sachs and surveys of CEOs have signaled that banks have expected the U.S. economy to avoid a recession. That came after there were a number of warnings that an economic downturn would occur due to elevated inflation combined with the after-effects of the COVID-19 pandemic, lockdowns, and other restrictions....