(5 March 2024 – United States) JPMorgan CEO Jamie Dimon believes market expectations are too optimistic towards the US economy experiencing a “soft landing” in 2024.
Mr Dimon believes markets aren’t anticipating interest rates could stay higher for longer, in contrast to the G20 finance heads who forecast the global has a stronger chance of achieving a soft landing.
“There are things out there which are kind of concerning, and we disagree with the high level of probability being assigned to the economy missing a recession. The market is kind of pricing in a soft landing. That may very well happen. But the market’s odds are 70 to 80 percent. I’ll give you half that, that’s all” Mr Dimon commented to CNBC’s Leslie Picker.
“It’s always a mistake to look at just the year. All these factors we talked about: QT, fiscal spending deficits, the geopolitics, those things may play out over multiple years. But they will play out and they will have an effect and in my mind I’m just kind of cautious about everything.”