Speaking at the JPMorgan High Yield and Leveraged Finance Conference earlier this week, JPMorgan Chase CEO Jamie Dimon said he’s concerned about the chances of a recession; however, he doesn’t predict looming systemic issues.
“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,” Dimon, who heads the largest U.S. bank by assets, said to CNBC.
His comments follow a softening of monetary policy expectations. Earlier in 2024, futures traders believed there was a strong chance for a series of interest rate cuts beginning in March. Now, however, they don’t predict them to occur until summer, and there won’t be as many as expected.
“It’s always a mistake to look at just the year,” Dimon said. “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.”
