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Stagflation Potential J P Morgan’s Jamie Dimon Suggests a Future of High Rates, Low Output
Right now, it might sound funny to talk about possible stagflation. Unemployment remains low, consumer spending has been solid all year, and GDP growth has been 2% or above for the first two quarters of 2023.
But inflation could prove to be the fly in this economic ointment. Although inflation is subsiding, it’s expected to linger…and linger some more. That stubbornness could lead to even higher-than-expected rates. And those, suggests J.P. Morgan CEO Jamie Dimon, might pave the way for a period of stagflation.
How would inflation persistence ultimately result in stagflation?
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