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Do You Believe The US Economy Is Heading In The Right Direction?
- Yes
- No
- I don't know
“I think there’s a chance real numbers will deteriorate soon,” JPMorgan Chase CEO Jamie Dimon said during a financial conference this week, per CNBC.
He explained that while the country has seen gains in jobs and spending, there are signs that the economy may be cooling.
“Employment will come down a little bit. Inflation will go up a little bit. Hopefully, it’s just a little bit,” Dimon said. He added that lower immigration levels could also hurt hiring in the future, as companies may struggle to find workers.
While Dimon has shared cautious forecasts before, his latest comments come as some Americans are already feeling the strain of rising inflation, surging housing costs, and higher interest rates.
He isn't alone. The World Bank this week slashed its global growth forecast. A new report from the agency projects global growth to slow from 2.7 percent to 2.3 percent, while U.S. growth is expected to decline from 1.8 percent to 1.4 percent, according to The Hill.
It's the weakest outlook since the Great Recession in 2008.
“The sharp increase in tariffs and the ensuing uncertainty are contributing to a broad-based growth slowdown and deteriorating prospects in most of the world’s economies,” economists for the World Bank wrote.
The report went on to say that predictions and prayers for a "soft landing" from the COVID pandemic have passed, according to the report.
President Donald Trump, however, has dismissed these warnings as overblown. He has repeatedly said his strategy of using tariffs as a bargaining tool will yield benefits.
He touted progress online Wednesday, June 11, celebrating that a deal between the U.S. and China was nearly complete and only required signatures from him and Chinese President Xi Jinping.
Many economists cited Trump's trade war as the catalyst for the rise in some prices last month, and it's unclear how a potential deal would affect consumer costs, the Guardian reported.
Trump celebrated earlier this month when the May jobs report came in slightly stronger than expected
"AMERICA IS HOT! SIX MONTHS AGO IT WAS COLD AS ICE! BORDER IS CLOSED, PRICES ARE DOWN. WAGES ARE UP!" he said on Truth Social.
But several Democrats and some economists have warned it's too early to celebrate. Massachusetts Sen. Elizabeth Warren, ranking member of the Senate's banking committee, said the report shows signs of trouble.
“Last week’s jobs data showed a softening labor market,” she said on Tuesday, according to the Guardian. “Today’s inflation data shows food and electricity prices are up.”
Many have said the full impact of the tariffs and trade wars hasn't hit the United States.
JPMorgan Chase said in a report last week that a period of stagflation — a combination of high inflation, stagnant economic growth, and high unemployment — could hit the country later this summer, according to the Daily Mail.
Dimon said that it is not guaranteed, but it is something the country and world economy must plan for now to mitigate any potential fallout.
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