America’s most powerful banker has warned that the US economy faces a greater threat than a recession.
By ALICE WRIGHT FOR DAILYMAIL.COM
JPMorgan Chase CEO Jamie Dimon has warned that the threat of stagflation could still strike the US economy.
Stagflation is the combination of economic stag-nation and in-flation. Prices continue to soar at the same time as unemployment rises and economic growth slows – a triple whammy of problems.
Economists consider stagflation, last seen in the US in the 1970s, to be worse than a recession.
It would send stocks down, hitting 401(K)s and other retirement savings.
In contrast during a recession, unemployment increases and the economy shrinks – but the silver lining is that there is little or no inflation.
‘There’s a chance that (we’ll) have stagflation (in the US),’ Dimon told Bloomberg on Thursday.
Dimon said while he was not making a certain prediction, ‘we have to be prepared for something like that.’
Jamie Dimon has warned that the threat of stagflation could still strike the US economy