JPMorgan CEO Jamie Dimon Warns Inflation Could Be 'Stickier' and Rates Higher Than Markets Expect (2024)

FAQs

What did JP Morgan CEO issue warning on the US economy? ›

JPMorgan Chase CEO Jamie Dimon issued a stark warning about the potential for a "hard landing" for the U.S. economy, citing concerns about stagflation and persistent inflation. Dimon made the comments in an interview with CNBC at the JPMorgan Global China Summit in Shanghai.

Our outlook for the new year is “2024”: 2% growth, 0 recessions, 2% inflation and 4% unemployment.

Morgan used his personal power and reputation to encourage the formation of trusts and mergers within industries where he saw ruinous competition.

Dimon said that he has JPMorgan preparing "for a very broad range of interest rates, from 2% to 8% or even more, with equally wide-ranging economic outcomes — from strong economic growth with moderate inflation (in this case, higher interest rates would result from higher demand for capital) to a recession with ...

J.P. Morgan was known for reorganizing businesses to make them more profitable and stable and gaining control of them. He reorganized several major railroads and became a powerful railroad magnate. He also financed industrial consolidations that formed General Electric, U.S. Steel, and International Harvester.

Dimon said the worst outcome for the U.S. economy will be a “stagflation” scenario, where inflation continues to rise, but growth slows amid high unemployment. “I look at the range of outcomes and again, the worst outcome for all of us is what you call stagflation, higher rates, recession.

Average Price Target

Based on 23 Wall Street analysts offering 12 month price targets for JPMorgan Chase & Co. in the last 3 months. The average price target is $213.96 with a high forecast of $231.19 and a low forecast of $185.00. The average price target represents a 8.00% change from the last price of $198.11.

Both the Consumer Price Index and the core index declined slightly for the first time this year. Inflation rates have remained stubbornly high in 2024. Increasing housing costs play a big role.

According to Investopedia, J.P. Morgan's net worth has been estimated to have been about $80 million. In 2022 dollars, that's equivalent to about $2.3 billion, though some speculate that his fortune at the peak of his career might have been worth as much as $60 billion in 2022 dollars.

JPMorgan estimated that between 1831 and 1865, the two banks accepted approximately 13,000 slaves as collateral and ended up owning about 1,250 slaves. An apology was made in compliance with a rule requiring companies to detail past dealings with the slave trade when doing business with the city of Chicago.

What is the oldest bank in the United States? ›

Future Treasury Secretary Alexander Hamilton founds the Bank of New York, the oldest continuously operating bank in the United States—operating today as BNY Mellon.

Wall Street banker J. P. Morgan was a devoted Episcopalian. He was an officer of his local church. He served on a national committee charged with revising the Book of Common Prayer (much of which he knew by heart).

U.S. HISTORY

Fearing the city's financial collapse would worsen the panic, Morgan and his banker friends purchased $30 million in city bonds. Brokerage firms, which han- dled stock market transactions, were also in danger of failing. They were paying skyrocketing in- terest rates on loans to meet their obligations.

The U.S. economic boom is "unbelievable," Dimon said at an Economic Club of New York event on Tuesday. "Even if we go into recession, the consumer's still in good shape." Still, he warned about the potential economic effects of the rising national debt, inflation and geopolitical conflicts.

If all investors try to sell their shares at once and no one is willing to buy, the value of the market shrinks. Wealthy investors like J.P. Morgan hoped to stop the crash by pooling their resources and buying up large amounts of stock. On October 24, 1929, "Black Thursday," this massive sell-a-thon began.

The Panic of 1907, also known as the 1907 Bankers' Panic or Knickerbocker Crisis, was a financial crisis that took place in the United States over a three-week period starting in mid-October, when the New York Stock Exchange suddenly fell almost 50% from its peak the previous year.