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Jamie Dimon warned about the rising government deficits, elevated public spending, and geopolitical challenges like the growing influence of the BRICS bloc. The JPMorgan CEO expressed concerns over the U.S. economy, highlighting the risks of stagflation—persistent high inflation alongside stagnant growth. JPMorgan Chase & Co. CEO Jamie Dimon recently raised alarms about a potential economic crisis in the United States. He emphasizes the impact of rising inflation and geopolitical challenges as the BRICS bloc gains power. Speaking at the Council of Institutional Investors in New York this week, Dimon expressed concerns over the country’s economic outlook. Dimon also hinted that the challenges could go far beyond a typical recession. On Wednesday, September 18, the Federal Reserve made its first interest rate cut in four years as inflation is inching closer to the Fed’s 2% target. Despite this reduction, Dimon cautioned that the economy remains on shaky ground. Fed Rate Cuts Won’t Solve The Inherent Problems In US Economy The decision to lower rates comes after interest rates had previously surged to a 23-year high, a measure taken by the central bank to curb inflation. However, many experts, including Dimon, worry that the country’s economy might not yet be in the clear. One of Dimon’s primary concerns is the possibility of stagflation, wherein there is stagnant economic growth alongside high inflation. During the event in Brooklyn, Dimon said, “I would say the worst outcome is stagflation—recession, higher inflation. And by the way, I wouldn’t take it off the table.” His remarks underscore the unease surrounding the U.S. economy, with inflation still out of control despite recent monetary policy changes. Dimon further highlighted that inflationary pressures could persist due to several key factors. On the other hand, the BRICS bloc poses different challenges while moving away from the USD.  These include rising…

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Filed under: News - @ September 20, 2024 11:08 pm