JPMorgan CEO Jamie Dimon has claimed the US economy ‘is weakening’ after it emerged there were far fewer new jobs created last year than initially thought.
Yesterday, government figures revealed the number of jobs added to the economy for the year through March was 911,000 less than previously reported.
‘I think the economy is weakening,’ Dimon said of the new report which would mean 76,000 less jobs for every month.
‘Whether it’s on the way to recession or just weakening, I don’t know,’ he told CNBC.
Wall Street watchers pay careful attention to Dimon’s words as well as the official data for a sense of where financial markets and the economy may be headed.
‘There’s a lot of different factors in the economy right now,’ Dimon added, pointing to weaker consumer spending but robust corporate profits.
‘We just have to wait and see,’ he explained.
Dimon told the program that the Federal Reserve will ‘probably’ lower interest rates but that it might not ‘be consequential to the economy.’
Jamie Dimon, the longtime CEO of JPMorgan Chase has claimed the economy is weakening
Federal Reserve chief Jerome Powell recently indicated that a cut to the benchmark interest rate could come at the central bank’s next meeting.
Other leading figures now believe America is in a ‘jobs recession’ that risks pushing the rest of the economy into a full blown downturn.
Mark Zandi, the chief economist of Moody’s Analytics, said a ‘labor recession’ is already underway and that further revisions risk tipping the economy over a cliff.
Zandi added that an uptick in layoffs – already up 140 percent from a year ago – would also darken the economic situation.
‘If businesses start laying [people] off, then I think this will not just be a jobs recession, it will be an overall economic downturn,’ Zandi told Business Insider.
‘Everything is clinging tightly to the lip of the cliff,’ he told the publication.
‘We had 10 fingers on the edge of the cliff a couple months ago, we now [have] seven fingers.
‘A couple more fingers, and we’re going, then we’re going over the edge.’
Wall Street watchers pay careful attention to Dimon’s words
Workers said they believed there was a 45 percent likelihood of finding another job if laid off
Zandi, chief economist of Moody’s Analytics, said a ‘labor recession’ is already underway
Zandi also suggested that lowering borrowing costs would not be enough to prevent a recession.
‘A lot of the benefit of the lower rates is already in the [market] because investors anticipated the rate cuts,’ he said.
Zandi also recently warned that a third of the US is already in or at high risk of going into a recession.
He revealed Moody’s data showing that states making up nearly a third of America’s GDP – including Virginia, Connecticut and Delaware – are in dangerous territory.
‘States experiencing recessions are spread across the country, but the broader DC area stands out due to government job cuts,’ Zandi wrote on X.
States representing another third of the economy are holding steady – such as Hawaii, New York and California – and a final third are still growing.
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