U.S. Looking ‘Like the 1970s,’ JPMorgan Chase’s CEO Says

By: Ben Campbell | Published: Jan 19, 2024

One of America’s most prominent CEOs, Jamie Dimon, has said the nation may be in for a rough 2024 as far as the economy’s concerned and hints at a possible recession.

Dimon, who sits as the head of JPMorgan, isn’t on board with the Fed’s idea of a soft landing for the economy and compares this coming year with the 1970s, which saw periods of stagnant growth and relatively high inflation.

Economists Wrong About 2024

Experts surmise the American economy in 2024 could be in for a soft landing after the Fed announced it is planning to cut rates this year.

Jamie Dimon, CEO and Chairman of the Board of JPMorgan Chase & Co, speaks at an event

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However, the JPMorgan CEO isn’t on board with the idea and claims 2024 may be more like the 1970s, which could have horrible consequences for everyone.


Looming Recession Could Hit in 2024

Dimon spoke about the possibility of a recession during an interview with Maria Bartiromo on the show “Mondays with Maria.”

Fox anchor Maria Bartiromo pictured on the set of the show “Mornings With Maria”

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During the talk, the head of JPMorgan compared the current state of the American economy to that of the 1980s, which experienced high inflation rates for almost a decade.

Dimon Explains His Prediction

During the talk with Bartiromo, Dimon said he believes the U.S. is close to entering a recession.

Former California Governor Arnold discussing the rapid rate of job losses during a recession in the mid-2000s

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“I look at a lot of things and forget just economic models for a second, $2 trillion of fiscal deficit, the infrastructure and IRA act, the green economy, the re-militarization of the world, the restructuring of trade are all inflationary,” he said (via MSN). “And that looks a little more like the 1970s to me.”

People Should Prepare for Uncertain Inflation

The head of one of America’s largest banks also warned people to prepare for uncertainty when it comes to inflation in 2024.

A man dressed in a grey suit observes the stock market on his laptop

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“So I think there’s a chance here that people should be prepared that inflation comes down but then bounces around three [percent] and maybe even bounces up a little bit,” he said.

Comments Go Against Expert's Opinions

The points brought up by Dimon on “Mondays with Maria” appear to go against what the nation’s economists believe.

Economist gives a talk to co-workers who are seated around a large wooden table

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Many experts are under the impression that thanks to promised rate cuts from the Fed this year, the economy may experience a soft landing. However, Dimon disagrees.


The Ups and Downs of the Economy

The CEO mentioned he’s skeptical about a scenario in which the economy finds a sweet spot after years of inflation.

A man speaks on the phone as he stares at recent changes in stock prices on his laptop

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“I’m a little skeptical of this kind of ‘Goldilocks’ kind of scenario,” he said (via Yahoo Finance).


Crosscurrents Are Getting High

Speaking on the predictions made about potential rate hikes, Dimon said he’s also skeptical about this promise.

Jamie Dimon, Chairman and CEO of JPMorgan Chase, testifies during a Senate Banking Committee hearing

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 “Obviously, all of us in business have known how to deal with the ups and downs of vicissitudes of the economy. But I do think the crosscurrents are pretty high: the money is running out, rates are high, [quantitative tightening] hasn’t happened yet,” he said.


COVID Money Will Soon Run Out

Dimon made a point to mention that the COVID money, which he believes is keeping the consumers afloat, will soon run out.

An older man dressed in navy jeans and wearing a mask awaits an appointment at the doctor

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“Credit is normalizing, but it’s still lower. Stock prices are up. The consumer is in good shape. But the extra money that they got during COVID, trillions of dollars, that’s kind of running out … It runs out this year,” he said.


Recession Is on Its Way

According to the JPMorgan CEO, a recession is on its way. Yet, he admits that it’s difficult to surmise how severe it will be.

A man dressed in an open brown shirt counts up what little money he has on a wooden desk

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“It might be [a] mild recession or heavy recession,” said Dimon.


Rate Hikes Take Time to Appear

Dimon explained the rate hikes implemented by the Fed takes longer than expected to show up in the economy. This is one reason why the nation could be heading toward a short recession.

A man dressed in a suit jacket is visibility upset as he stars at a graph on his computer screen

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“I think they did the right thing to raise rates. I think it was a little late, and I think they’re doing the right thing just to wait and see what happens,” he said (via Yahoo Finance).


The CEO Sticks to His Opinion

Nonetheless, at the end of his talk with Bartiromo, the JPMorgan CEO firmly reiterated the idea that a recession is forthcoming.

Andrew Ross Sorkin and Jamie Dimon speak onstage during The New York Times Dealbook Summit 2023

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“But all of those factors may very well push us to recession, as opposed to a soft landing,” he said.