JPMorgan CEO Hints at Looming Crisis Worse Than Recession

JPMorgan Chase CEO Jamie Dimon said this week that a fate worse than recession for the U.S. economy—namely, stagflation—can’t be ruled out. Speaking at the Council of Institutional Investors’ fall conference in New York City on Sept. 10, Dimon expressed concern about the possibility that stagflation—a detrimental mix of economic stagnation and inflation—could well be stalking the U.S. economy. “The worst outcome is stagflation—recession, higher inflation,” Dimon said. “And, by the way, I wouldn’t take it off the table.” Stagflation, a term often associated with the 1970s, is marked by elevated price pressures, increasing unemployment, and stagnating economic growth. Such a combination could push stock markets lower, strain retirement accounts, and reduce consumer purchasing power. It could also lead to prolonged economic hardship, making it difficult for policymakers to revive growth without making inflation worse....