JPMorgan Chase CEO Jamie Dimon is back in the economic spotlight, offering what he might call a “measured verdict” on the state of the US economy. According to him, growth is losing momentum, though the economy is not yet at a breaking point.
In an interview with CNBC, Dimon noted that while inflation has eased, it remains stuck at 2.9%, which is still above the Fed’s target. This comes against a backdrop of global shortages, remilitarization, and fractured supply chains.
Adding fuel to the fire is a $100,000 fee on new H-1B visa petitions. The fee is intended to push wages higher, though inflation is likely to rise with them.
The Fed, meanwhile, is pretending to steer the wheel. The regulator lowered interest rates by just 25 basis points. However, Dimon stressed that bolder action would only follow if the economy tips into a crisis rather than merely slows down.
The labor market, he argued, already shows signs of fatigue. Achieving a balance between “saving jobs” and “crushing inflation” is akin to walking a tightrope. In Dimon’s view, Powell has chosen the strategy of a cautious juggler who cannot afford to drop a single egg.
Finally, a dose of cautious optimism. Dimon advises against panicking but says that it is too early to celebrate. He argues that the US economy looks more fatigued than on the verge of collapse. The real question is how much longer it can keep running without extra support.
