Jamie Dimon says the US economy is booming, inflation will stay hot, and the Fed may have to hike rates hard. Here are his 11 best quotes from a new interview.

Jamie Dimon, Chairman & CEO of JP Morgan Chase & Co, speaks during the Bloomberg Global Business Forum in New York on September 25, 2019.
Jamie Dimon has run JPMorgan since 2005. Kena Betancur/AFP via Getty Images
  • Jamie Dimon said the US economy is very strong, with consumers flush with cash due to the pandemic.
  • The JPMorgan CEO thinks inflation will remain elevated and stay well above the Federal Reserve’s target this year.
  • He said the central bank will likely hike interest rates four or more times, and could even induce a recession.

JPMorgan CEO Jamie Dimon hailed the strength of the US economy, said he thinks inflation is will remain elevated, and said he wouldn’t be surprised if the Federal Reserve raised interest rates more than four times in 2022, in an interview with CNBC Monday.

He also raised the possibility that the Fed’s actions will induce a recession, but told CNBC’s Bertha Coombs it is likely to be mild and short if history is any guide.

Here are the best quotes.

The US economy is in great shape

1. “We’re gonna have the best growth we’ve ever had this year — I think since maybe sometime after the Great Depression. And so next year, it will be pretty good too.”

2. “There’s some still suffering and we’re still kind of working through this, but the consumer balance sheet has never been in better shape. They’re spending 25% more today than pre-COVID. They’ve got $2 trillion in their checking accounts.”

3. “Home prices are up, stock prices are up. Jobs are plentiful, wages are going up, and that all tells you what’s gonna happen in the future.”

Markets are set for “a lot” of volatility

4. “The market is different … the market can have its own fluctuations, unrelated to the economy.”

5. “We’re expecting that the market will have a lot of volatility this year as rates go up and people redo projections and look at the effective interest rate and businesses differently than they did before.”

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Inflation is staying hot, and the Federal Reserve will act

6. “A lot of people project inflation being 2.3% at the end of this year. I don’t, I think it’s gonna be higher.”

7. “I’d personally be surprised if it’s just four increases next year. I think that four increases of 25 basis points is a very, very little amount and very easy for the economy to absorb,” referring to how times the Fed will hike interest rates in 2022.

8. “If we’re lucky, the Fed will slow things down, and we’ll have what they call a ‘soft landing’. It’s gonna be a little bit like threading a needle. So you can’t look at anything and say, that’s my projection, because you really don’t know.”

Fed tightening could trigger a mild recession

9. “There’s no common, one type of recession. But a fairly common one is the Fed raising the rate to slow down the overheated economy, to kind of keep inflation in check.”

10. “If I remember correctly, if you look at the six of [those recessions], some of them were just short. They were six months, nine months long, you didn’t even go into negative growth really … so hopefully that’s the case,” referring to pullbacks that followed Fed action.

11. “Hopefully Omicron may be putting this COVID-19 in the rear view mirror. And if that’s true, we may have a very, very good spring.”