{"id":179419,"date":"2025-06-12T21:53:24","date_gmt":"2025-06-12T21:53:24","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/179419\/"},"modified":"2025-06-12T21:53:24","modified_gmt":"2025-06-12T21:53:24","slug":"jamie-dimon-says-inflation-will-go-up-and-employment-will-shift-down-as-economy-deteriorates-amid-shifting-tectonic-plates","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/179419\/","title":{"rendered":"Jamie Dimon says inflation will go up and employment will shift down as economy \u2018deteriorates\u2019 amid shifting \u2018tectonic plates\u2019"},"content":{"rendered":"\n<ul class=\"yf-1woyvo2\">\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\"><strong>JPMorgan CEO Jamie Dimon warned<\/strong> that the economic stimulus from the pandemic has run its course, leaving consumers with depleted savings and raising concerns that inflation could rise while employment falls, posing a challenge for the Federal Reserve\u2019s dual mandate.<\/p>\n<\/li>\n<\/ul>\n<p class=\"yf-1090901\">For months, Federal Reserve Chairman Jerome Powell has been nervous that the two sides of the Federal Open Market Committee\u2019s <a href=\"https:\/\/fortune.com\/2025\/05\/07\/fed-solving-unemployment-inflation-powell\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:dual mandate will end up in opposition.;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">dual mandate will end up in opposition. <\/a><\/p>\n<p class=\"yf-1090901\">Now, JPMorgan CEO Jamie Dimon has <a href=\"https:\/\/fortune.com\/2024\/10\/09\/jamie-dimon-backs-powell-fed-rate-cut\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:suggested he\u2019s right;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">suggested he\u2019s right<\/a>: The Wall Street veteran sees inflation going up and employment rates coming down, a headache indeed for the FOMC chairman.<\/p>\n<p class=\"yf-1090901\">Dimon suggested the upset has been brewing for some time, as opposed to being symptomatic of recent volatility in economic and foreign policy.<\/p>\n<p class=\"yf-1090901\">What is driving the billionaire banker\u2019s fears is that the pumps used to boost the economy during the pandemic have finally run dry, and consumers are at last likely to pay the price.<\/p>\n<p class=\"yf-1090901\">Thus far, Wall Street giants have been <a href=\"https:\/\/fortune.com\/2025\/03\/20\/brian-moynihan-consumers-pessimistic-spending-growth\/#\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:pleasantly surprised by the robust health of consumers;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">pleasantly surprised by the robust health of consumers<\/a>, which prevented the economy from free-falling into a hard landing and recession.<\/p>\n<p class=\"yf-1090901\">But it seems the economy hasn\u2019t escaped without any significant scars, with Dimon telling Morgan Stanley\u2019s U.S. Financials conference this week <a href=\"https:\/\/fortune.com\/2024\/03\/20\/bank-of-america-ceo-brian-moynihan-consumer-burn-out-mindful-fed\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:the mood is \u201cokay,\u201d;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">the mood is \u201cokay,\u201d<\/a> explaining: \u201cSo the consumer had money, wages are pretty good, unemployment is pretty good, they\u2019re spending it \u2026 All the extra money from COVID is kinda gone, so the lower-end folks \u2026 have normalized.<\/p>\n<p class=\"yf-1090901\">\u201cAt the upper end, the consumer is still traveling and spending some money, their jobs are there. Their home prices are way up, their stock prices are way up, it\u2019s looking pretty good.\u201d<\/p>\n<p class=\"yf-1090901\">But Dimon also noted that sentiment has fluctuated since Trump took office. Per the University of Michigan\u2019s consumer sentiment barometer, for example, the index dropped from 71.7 in January 2025 to 52.2 by April, but has since stabilized.<\/p>\n<p class=\"yf-1090901\">The stock market has similarly fluctuated, wiping billions off the net worth of some of the world\u2019s richest people before ballooning back up again. The S&amp;P 500, for example, is <a href=\"https:\/\/www.spglobal.com\/spdji\/en\/indices\/equity\/sp-500\/#overview\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:up 2.6%;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">up 2.6%<\/a> for the year to date at the time of writing.<\/p>\n<p class=\"yf-1090901\">\u201cThe corporate side\u2019s the same thing,\u201d continued Dimon, per a recording obtained by Fortune. \u201cSentiments dropped, sentiments are coming back up, but business is still okay.<\/p>\n<p class=\"yf-1090901\">\u201cBut the buts are real\u2014I\u2019m not trying to be negative. We spent $10 trillion \u2026 Well, of course consumers have more money, we gave it to them. Of course businesses are doing better, consumers spent the $10 trillion\u2014that goes right through P&amp;Ls in every industry out there.<\/p>\n<p> Story Continues <\/p>\n<p class=\"yf-1090901\">\u201cAnd then we had QE [quantitative easing] \u2026 and the real reversal is just starting.\u201d<\/p>\n<p class=\"yf-1090901\">Dimon\u2019s $10 trillion figure is understood to refer to the global spending governments <a href=\"https:\/\/www.mckinsey.com.br\/~\/media\/McKinsey\/Industries\/Public%20and%20Social%20Sector\/Our%20Insights\/The%2010%20trillion%20dollar%20rescue%20How%20governments%20can%20deliver%20impact\/The-10-trillion-dollar-rescue-How-governments-can-deliver-impact-vF.pdf\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:committed to boosting their economies during the pandemic.;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">committed to boosting their economies during the pandemic.<\/a><\/p>\n<p class=\"yf-1090901\">He added: \u201cThen you have all these really complex, moving tectonic plates around trade, economics, geopolitics, and future factors, which I think are inflationary: military, restructuring of trade, ongoing fiscal deficits, so it\u2019s okay, but whenever you say \u2018consumer sentiment\u2019 remember neither consumers nor businesses ever pick the inflection points, they never have.<\/p>\n<p class=\"yf-1090901\">\u201cIf you\u2019re looking for that inflection point \u2026 they\u2019re not going to tell you that, you\u2019re going to see real numbers, and I think there\u2019s a chance real numbers will deteriorate. Employment will come down a little bit, inflation will go up a little bit\u2014hopefully, it\u2019s just a little bit.\u201d<\/p>\n<p class=\"yf-1090901\">Dimon added he wouldn\u2019t worry about smaller fluctuations in metrics such as inflation and the employment rate, but would be more focused on wider issues (as he calls them, the \u201cbig ones\u201d) like geopolitics, trading partnerships, and the militarization of the world.<\/p>\n<p class=\"yf-1090901\">This will be no surprise to those who have avidly read Dimon\u2019s shareholder letters over the past few years.<\/p>\n<p class=\"yf-1090901\"><a href=\"https:\/\/fortune.com\/2025\/04\/07\/jamie-dimon-annual-shareholder-letter-trump-tariffs-us-economy\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:In his most recent letter;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">In his most recent letter<\/a>, for example, he cautioned the White House against pushing key allies too far away: \u201cKeeping our alliances together, both militarily and economically, is essential. The opposite is precisely what our adversaries want.\u201d<\/p>\n<p class=\"yf-1090901\">\u201cThis is going to be hard, but our country\u2019s goal should be to help make European nations stronger and keep them close. If Europe\u2019s economic weakness leads to fragmentation, the landscape will look a lot like the world before World War II.\u201d<\/p>\n<p class=\"yf-1090901\">He added: \u201cEconomics is the longtime glue, and America First is fine, as long as it doesn\u2019t end up being America alone.\u201d<\/p>\n<p class=\"yf-1090901\">This story was originally featured on <a href=\"https:\/\/fortune.com\/2025\/06\/12\/jamie-dimon-inflation-employment-fears-economy-deteriorate\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Fortune.com;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Fortune.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"JPMorgan CEO Jamie Dimon warned that the economic stimulus from the pandemic has run its course, leaving consumers&hellip;\n","protected":false},"author":2,"featured_media":179420,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3092],"tags":[51,49054,26514,73855,3374,28810,73856,7372,73854,476,3621,17178,897,16,15],"class_list":{"0":"post-179419","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-jobs","8":"tag-business","9":"tag-consumer-sentiment","10":"tag-consumers","11":"tag-economic-stimulus","12":"tag-employment","13":"tag-employment-rate","14":"tag-federal-open-market-committee","15":"tag-federal-reserve","16":"tag-federal-reserve-chairman","17":"tag-inflation","18":"tag-jamie-dimon","19":"tag-jerome-powell","20":"tag-jobs","21":"tag-uk","22":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114672619207654640","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/179419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=179419"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/179419\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/179420"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=179419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=179419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=179419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}