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JPMorgan chief Jamie Dimon warns US economy faces an outcome worse than a recession

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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.

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Don’t Vote For APC They Have Plunged Nigeria Into An Abyss Of Suffering, Atiku Warns Edo Voters

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Atiku Abubakar
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Atiku made this known in a statement on his X handle on Wednesday titled ‘The clear choice for a prosperous Edo State’.

Former Vice President, Atiku Abubakar, has warned Edo citizens against voting for an Alliance Progressive Congress candidate in the upcoming Edo State governorship election.

Atiku made this known in a statement on his X handle on Wednesday titled ‘The clear choice for a prosperous Edo State’.

He advised Edo voters to opt for change, adding that APC had forsaken the ideals of governance, ignoring the cries of the common man.

He said, “As the good citizens of Edo State prepare to make their voices heard this Saturday, the 21st of September, 2024, let us reflect on the immense power within our grasp.

“The power to break free from the chains of bad governance, the power to chart a new course for our beloved state. That power lies in your vote, a precious tool for change.

“The APC has donned the mask of a friend to the masses, but behind this veil lies a sinister reality. They have lured gullible voters with sweet promises, only to reveal their true nature— a party driven by a hunger for power rather than the well-being of the people.

“They have forsaken the ideals of governance, ignoring the cries of the common man while pursuing their own selfish ambitions. Under their watch, Nigeria has been plunged into an abyss of suffering.

“They have sown seeds of poverty, despair, and insecurity. The once vibrant spirit of our nation has been dimmed by a relentless struggle for survival, where even the simplest of needs, like food, have become out of reach for millions.

“In this grim reality, our people are not dying of disease but of hunger. We stand at the lowest point in our nation’s governance. The APC has not served the people; they have served themselves.

“And when the people, rightfully aggrieved, have raised their voices in protest, they have been silenced, dragged to courts under charges of treason. Meanwhile, the APC’s leaders bask in luxury, indifferent to the hardship that grips the nation.

“But there is hope. In this dark landscape, Dr. Asue Ighodalo shines as a beacon of integrity and vision. His candidacy offers a path to redemption for Edo State. Where the APC has faltered, Ighodalo stands firm, ready to serve with competence and a genuine commitment to the people’s welfare.

“People of Edo State, the time has come to use the power vested in you. As you go to the polls, ask yourself: Has the APC made your life better, or have they only deepened your struggles? The answer is clear.

“Your vote for Ighodalo will not only bring change to Edo State but will also send a resounding message across Nigeria that we reject the deceit and self-serving ways of the APC.

“For nearly a decade, the APC has betrayed the people. They criticized past leaders for raising fuel prices, yet today, they preside over an era where fuel costs soar above N900 per litre. Their cruelty and disregard for the plight of the masses are unmatched.

“A vote for the APC is a vote for the continuation of misery, hunger, and despair. Open your eyes, Edo State. Do not be swayed by the empty promises of the APC. Electing Dr. Asue Ighodalo of the PDP is not just a vote; it is an act of reclaiming our future.

“It is a choice to consolidate the good work of Governor Godwin Obaseki and to build a future of prosperity, dignity, and hope. Let us march to the polls this Saturday, united in our resolve to bring about the change we so desperately need.

“Let us cast our votes for Asue Ighodalo and usher in a new dawn for Edo State. The power is yours. Use it wisely.”

I even wander what APC tells Edo people during their campaigns

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INEC Withdraws Recognition Of Julius Abure As Labour Party Chairman

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Julius Abure
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The Independent National Electoral Commission (INEC) has officially withdrawn recognition of Julius Abure as the National Chairman of the Labour Party due to the expiration of his tenure in June 2024.

This decision follows a leadership crisis within the party, marked by internal conflicts and disagreements regarding Abure’s legitimacy.

INEC stated that Abure’s continued claim to the position is “illegal and unconstitutional” as his tenure expired in June.

This decision is supported by a counter-affidavit filed in the Federal High Court Abuja in response to the Labour Party’s lawsuit challenging its exclusion from INEC’s refresher training for uploading party agents ahead of the Edo and Ondo states governorship elections.

The party has been embroiled in a leadership tussle since June when the party’s congress in Anambra state extended the tenure of the Julius Abure-led executive.

However, this move has been contested by key stakeholders, including former deputy chairman Callistus Okafor, Abia State governor Alex Otti, and 2023 presidential candidate Peter Obi, who have collectively organized a national Congress to address the deadlock, further complicating the party’s internal dynamics.

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IPAC vows to boycott Imo 21 September LG elections

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Inter-Party Advisory Council (IPAC) [Photo Credit: Leadership News]
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IPAC’s chairman in Imo, Ichie Levi Ekeh, alleged that ISIEC failed to comply with some of the state’s 2024 local government election guidelines.

The Inter-Party Advisory Council (IPAC) on Tuesday declared that political parties that make up the body will boycott Saturday’s upcoming local government elections in Imo.

The state chairman of IPAC, Ichie Levi Ekeh, told reporters in Owerri that the group was disappointed in the Imo State Independent Electoral Commission (ISIEC) preparations for the election.

“As IPAC, we have decided to boycott the election to show our grievances and to show that ISIEC has not done what it should do by following the guidelines,” he said.

The state government had scheduled September 21 to conduct the council polls.

However, Mr Ekeh, also the state chairman of Zenith Labour Party (ZLP), alleged that ISIEC failed to comply with some of the state’s 2024 local government election guidelines.

“We have been following the process, but in recent times, it appears that the commission has derailed from the election guideline.

“We expected that candidates would have been given forms to fill and return for validation, but four days to the election, names of candidates and voters have not been published.

“Page 9, paragraph 5 (8) of the guideline, says that all nomination forms shall be delivered at the place or places appointed by the commission at least 20 days before the date of the election.

“Today is September 17, which is four days to the election, nothing has been done,” he said.

He also expressed displeasure that the commission declined its inquiry to clarify certain payments of non-refundable fees in the guideline.

“Instead, what they did was to send invitations to candidates to visit their office for the forms and validation.

“When these candidates got there, they were asked to pay N200,000 for the chairmanship position and N51,000 for the councillorship positions without the consent of the political parties that presented the candidates.

“It is up to the political parties to protect the interest of candidates,” he said.

Mr Ekeh said ISIEC had not been fair to political parties and added that the body was worried that candidates would not be given a level playing ground to participate in the election.

However, in his reaction, the chairman of ISIEC, Charles Ejiogu, said contrary to claims by IPAC, the commission followed the prescribed guidelines for the conduct of the election.

“I do not see any reason why the election will not hold on Saturday. The commission is fully prepared, adequately, sufficiently prepared for the election,” Mr Ejiogu said.

The commission’s chairman also said electoral officers and ad hoc staff training would be concluded before the elections.

He said 15,000 ad hoc staff had been recruited for the exercise in 305 wards and 4,758 polling units across the state.

Mr Ejiogu said the money paid for validation by candidates at the commission’s office was lawful.

(NAN)

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