JPMorgan’s Dimon Warns of U.S. Stagflation Risks Amid Fed Caution

JPMorgan Chase & Co. CEO Jamie Dimon has issued a stark warning about the potential for stagflation in the U.S. economy, citing rising geopolitical tensions and mounting deficits as key concerns. Dimon endorsed the Federal Reserve’s decision to maintain current interest rates, emphasizing that this is no time for complacency.

The banking executive dismissed optimistic assessments of the U.S. economic outlook, arguing against the notion that the country is in a ’sweet spot.’ He supported the Fed’s cautious approach to monetary policy, which has kept rates steady this year despite a seemingly solid economic backdrop.

Federal Reserve officials face increasing uncertainty about the impact of potential policy changes, including tariffs, on the economy. Recent Fed communications have highlighted growing risks of simultaneous increases in both inflation and unemployment, creating additional challenges for economic policymakers.