Politics
JPMorgan chief Jamie Dimon warns US economy faces an outcome worse than a recession
JPMorgan Chase CEO Jamie Dimon has said he would not rule out an outcome for the US economy which is widely considered to be worse than a recession.
The chief executive of the biggest bank in the US said this week ‘the worst income is stagflation,’ which he would not ‘take off the table.’
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.
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.
In a recession, unemployment increases and the economy shrinks – but the silver lining is that there is little or no inflation.
Dimon made the comments at a time when economists are turning their attention toward indicators of potential slowing growth.
While the annual rate of inflation is increasingly moving toward the Federal Reserve’s 2 percent target, reports on employment and manufacturing have revealed some signs of softening, CNBC reported.
Since taking over in 2006, Dimon, 68, has turned JPMorgan Chase – which has retail as well as investment arms – into the world’s biggest and most powerful bank with $4 trillion in assets.
Dimon said on Tuesday at a fall conference from the Council of Institutional Investors in New York City: ‘I would say the worst outcome is stagflation – recession, higher inflation.
‘And by the way, I wouldn’t take it off the table.’
On Wednesday, latest data from the Bureau of Labor Statistics revealed consumer prices were up 2.5 percent from a year earlier in August.
This is down from a 2.9 percent annual rate in July – and is the lowest rate of yearly price growth since February 2021.
This downward trend toward the Fed’s 2 percent inflation target paves the way for the central bank to cut interest rates at its next meeting on September 18.
This will bring benchmark borrowing costs down from a 23-year high and provide some relief for households.
But Dimon worries that there are still a raft of inflationary forces on the horizon, according to CNBC.
He pointed out that higher deficits and increased Government spending will add pressure to an economy still reeling from the impact of sustained higher interest rates.
‘They’re all inflationary, basically in the short run, the next couple of years,’ Dimon said.
‘So, it’s hard to look at [it] and say, “Well, no, we’re out of the woods.” I don’t think so.’
The Treasury Department announced Thursday that the US Government has spent more than $1 trillion this year on interest payments for the $35.3 trillion national debt.
This is the first time interest payments have crossed over this benchmark figure.
Jamie Dimon said this week ‘the worst income is stagflation,’ which he would not ‘take off the table’ for the US economy
The downward trend toward the Fed’s 2 percent inflation target paves the way for the central bank to cut interest rates at its next meeting on September 18 (Pictured: Federal Reserve Chair Jerome Powell)
Dimon has previously warned of an economic slowdown, saying that he would also not rule out a ‘hard landing’ for the US economy.
A ‘hard landing’ is when there is a marked economic slowdown following a period of rapid growth.
Other economists have predicted that the US is on track to stick a ‘soft landing’ – which has only happened once before.
This rare slowdown is when the rate of inflation returns to the Fed’s 2 percent target without triggering a recession.
Dimon, however, said in August that he thinks the odds of this happening are around 35 percent to 40 percent, CNBC reported, implying a recession is the more likely outcome.
Politics
Engineers Farouk Ahmed, Gbenga Komolafe resign, President Tinubu nominates successors to the Senate for approval
President Bola Ahmed Tinubu has asked the Senate to approve the nominations of two new chief executives for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The requests followed the resignation of Engineer Farouk Ahmed of the NMDPRA and Gbenga Komolafe of the NUPRC. Both officials were appointed in 2021 by former President Buhari to lead the two regulatory agencies created by the Petroleum Industry Act (PIA).
To fill these positions, President Tinubu has written to the Senate, requesting expedited confirmation of Oritsemeyiwa Amanorisewo Eyesan as CEO of NUPRC and Engineer Saidu Aliyu Mohammed as CEO of NMDPRA.
The two nominees are seasoned professionals in the oil and gas industry.
Eyesan, a graduate of Economics from the University of Benin, spent nearly 33 years with the NNPC and its subsidiaries. She retired as Executive Vice President, Upstream (2023–2024), and previously served as Group General Manager, Corporate Planning and Strategy at NNPC from 2019 to 2023.
Engineer Saidu Aliyu Mohammed, born in 1957 in Gombe, graduated from Ahmadu Bello University in 1981 with a Bachelor’s in Chemical Engineering. He was announced today as an independent non-executive director at Seplat Energy.
His prior roles include Managing Director of Kaduna Refining and Petrochemical Company and Nigerian Gas Company, as well as Chair of the boards of West African Gas Pipeline Company, Nigeria LNG subsidiaries, and NNPC Retail.
He also served as Group Executive Director/Chief Operating Officer, Gas & Power Directorate, where he provided strategic leadership for major gas projects and policy frameworks, including the Gas Masterplan, Gas Network Code, and contributions to the Petroleum Industry Act (PIA).
Engineer Mohammed played a pivotal role in delivering key projects such as the Escravos–Lagos Pipeline Expansion, the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline, and Nigeria LNG Train.
President Bola Tinubu felicitates Senator Ifeanyi Godwin Ararume, astute politician and accomplished businessman, on his birthday, December 16.
Senator Ararume’s odyssey in politics began in the late 1980s, when he served as the State Treasurer of the Liberal Convention in old Imo State. He later joined the National Finance Committee of the defunct National Republican Convention.
He represented Imo North in the 9th National Assembly. He was first elected in May 1999 and re-elected in April 2003. He also served on several committees and held other official roles.
President Tinubu commends the former senator for his years of service to the nation and contributions to its peace, unity, and progress.
The President describes Senator Ararume as a resolute and shrewd politician, highlighting his courageous and remarkable political journey through the years.
President Tinubu wishes Senator Ararume a happy 67th birthday and prays that God Almighty will grant him more years of good health and strength.
Politics
Ndigbo are no longer spectators in the Nigerian project- Minister Dave Umahi dismisses calls for Biafra under Tinubu’s administration
The Minister of Works, David Umahi, says the all-inclusive style of governance being practiced by President Bola Tinubu has made the agitation for Biafra an unnecessary clamour.
While speaking at the inspection of the Enugu-Anambra road last Saturday, December 13, Umahi said the Tinubu administration had given Ndigbo what they had sought for decades, not through secession, but through what he described as unprecedented inclusion in national governance and development.
He explained that the agitation for Biafra was historically driven by neglect, exclusion and underrepresentation at the federal level, but insisted that the situation had changed under the current administration.
“When a people are fully integrated, respected and empowered within the structure of the nation, the dream they once chased through agitation has already been achieved through cooperation.
The push for Biafran secession over the years was borne out of neglect, exclusion and underrepresentation but today the narrative has changed dramatically under President Bola Tinubu.
The President has deliberately opened the doors of national development to the South-East. Appointments, policy inputs and infrastructure priorities now reflect true federal balance.
Every sector now bears visible Igbo footprints. The emergence of Igbo sons and daughters in strategic positions is a testament to this inclusion.
Biafra was never about breaking Nigeria; it was about being counted in Nigeria. Through inclusion, equity and concrete development, Ndigbo are no longer spectators in the Nigerian project; they are co-authors of its future. When justice finds a people, agitation loses its voice.”he said
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