JPMorgan CEO warns US of economic fate worse than recession: ‘Worst outcome’

The CEO of JPMorgan Chase laid out the “worst case scenario” for America’s economic future beyond the recession.

“The worst outcome is stagflation,” Dimon said. “And by the way, I wouldn’t take it off the table.”

Jamie Dimon, 68, made his remarks Tuesday at the Council of Institutional Investors in New York.

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JPMorgan Chase is the largest bank in the United States, according to Bankrate, with $3.4M in assets.

Stagflation, a portmanteau of stagnation and inflation, refers to a state in which economic growth slows while inflation and unemployment rise.

The economic consequences of stagflation can cause retirement savings to decline as well as stock market crashes; it was last seen in the US in the 1970s, according to Investopedia.

While inflation in August rose less than expected to 2.5%, the outlook for the federal debt is bleak, with the growing number measuring $35,309,184,612,870.00 as of September 12th.

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Interest payments due in October on the national debt now exceed the cost of both Medicare and the national defense budget. National debt may contribute to continued inflation on the horizon.

It is the first time in American history that interest payments on the national debt have risen above $1 billion.

“So it’s hard to look at (her) and say, ‘Well, no, I’m out of the woods.’ I don’t think so,” Dimon said.

JPMorgan shares have gained more than 18% this year, in line with the S&P 500’s rise.

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Source of the original article: JPMorgan CEO warns US of economic fate worse than recession: ‘Worst outcome’