JPMorgan Chase CEO Jamie Dimon has issued a strong warning about the future of the US economy. Speaking at AllianceBernstein’s Strategic Decisions conference, Dimon expressed his concerns that unchecked government spending could lead to stagflation – a dreaded combination of high inflation, high unemployment, and low growth. Dimon highlighted the extraordinary amount of fiscal and monetary stimulus that has occurred over the past five years, questioning how it could not result in stagflation. While he acknowledged that it might not happen, Dimon stated that he is prepared for such an outcome.

Dimon also spoke about his belief that the Federal Reserve may continue to raise interest rates. In an interview with CNBC at the bank’s Global Summit in Shanghai, he argued that inflation is stickier than people realize, and the odds of it being higher are greater due to the lingering effects of fiscal and monetary stimulus. Dimon expressed concern about the worst possible outcome – stagflation, higher rates, and a recession – which would negatively impact corporate profits.

Dimon’s economic outlook aligns with a previous warning from JPMorgan’s chief market strategist, Marko Kolanovic, who also voiced concerns about the potential return of stagflation. Kolanovic emphasized the implications this could have on asset allocation and urged investors to consider the possibility of higher rates for a longer period and tighter financial conditions.

It is clear that Dimon and Kolanovic share apprehensions about the economy and the potential consequences of excessive government spending and monetary stimulus. Their warnings serve as a reminder for investors to exercise caution and conduct thorough research before making high-risk investments in Bitcoin, cryptocurrency, or digital assets.