\n
![](\"https:\/\/content.fortune.com\/wp-content\/uploads\/2024\/03\/GettyImages-1835546589-e1710206930170.jpg?w=2048\")
<\/p>\n [ad_1]
\n<\/p>\n
Jamie Dimon said he wouldn\u2019t take the prospect of a recession in the US \u201coff the table,\u201d but that the Federal Reserve should wait before it cuts interest rates.<\/p>\n
\u201cThe world is pricing in a soft landing, at probably 70-80%,\u201d the JPMorgan Chase<\/a> & Co. chief executive officer said via video link at the Australian Financial Review Business Summit in Sydney on Tuesday. \u201cI think the chance of a soft landing in the next year or two is half that. The worst case would be stagflation.\u201d<\/p>\n Dimon said economic indicators have been distorted by Covid-19 and he takes them with \u201ca grain of salt,\u201d saying the Fed should wait for more clarity before lowering interest rates.<\/p>\n \u201cThey can always cut quickly and dramatically. Their credibility is a bit at stake here,\u201d he said. \u201cUnemployment in the United States is very low at the moment, wages continue to go up.\u201d<\/p>\n Dimon said while the US economy was \u201ckind of booming\u201d currently, the risk of a recession remained.<\/p>\n The comments strike a slightly less optimistic tone from the top banker, who has recently painted a sanguine outlook for world markets \u2014 a sharp divergence from his views less than two years ago when central banks first started tightening interest rates. Dimon made headlines for warning in 2022 that a \u201churricane\u201d was about to hit the US economy.<\/p>\n Read More:\u00a0Dimon Says CRE Will \u2018Muddle Through\u2019 as Long as No Recession<\/a><\/p>\n Federal Reserve Chair Jerome Powell last week suggested the central bank is\u00a0getting close<\/a>\u00a0to the confidence it needs to start lowering interest rates.<\/p>\n \u201cWe\u2019re waiting to become more confident that inflation is moving sustainably at 2%,\u201d Powell said Thursday while answering questions from the Senate Banking Committee. \u201cWhen we do get that confidence \u2014 and we\u2019re not far from it \u2014 it\u2019ll be appropriate to begin to dial back the level of restriction.\u201d<\/p>\n<\/div>\nSubscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up<\/a> for free.<\/div>\n<\/div>\n