According to Jamie Dimon, CEO of JPMorgan Chase (NYSE:JPM), the U.S. economy may enter a “Goldilocks mild recession” because of the still-strong consumer, heightened macroeconomic uncertainty, and tight monetary policy.
Dimon underlined that consumers are spending 10% more than they were prior to the outbreak and that “businesses are in good health” as well. “That’s driving this great economy,” all in.
He also listed a number of things that made things more uncertain, such as the Russian invasion of Ukraine, the price of energy and commodities, and quantitative tightening. He said that “we’ll end up with that kind of Goldilocks-light recession, but they may not” if the uncertainty subsided.
He told Fox that he “shouldn’t have ever used the word “hurricane,” “while it’s vital to be “a little prepared for both of them,” in response to Dimon’s pessimistic comments from June 1 about “storm clouds” (macro risks) becoming a “hurricane down the road.”
JPM Stock Outlook
Early storm clouds arrived. QT, as you are aware, is inflation. “The stock market is down 20%.” As a result, we already had a minor storm.” Dimon responded that he agreed with the general opinion that the Federal Open Market Committee should raise rates to 5% and then take a break for a while when asked if he supported the Fed slowing down the pace of its interest-rate hikes.
To curb inflation, though, “I’m on the side where it may not be enough.” Dimon also doesn’t think the Fed will change its mind, especially since the Bank of England’s change last year caused market instability.
“They might very briefly turn it around.” However, part of that fluid must be removed, he explained. Last week (Jan. 6), Tom Barkin, president of the Richmond Fed, said, “Smaller rate hikes will help keep the economy from getting hurt.”
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Author Jowi Kwasu 
