Following a record-breaking downward revision of nonfarm payrolls by 911,000 jobs, above the consensus estimate of 700,000, JPMorgan CEO Jamie Dimon has cautioned that the economy could be slowing down.
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“I think the economy is weakening,” Dimon said on Tuesday in an interview with CNBC. “Whether it’s on the way to recession or just weakening, I don’t know.” He added that the Fed will likely lower rates during the September 16-17 Federal Open Market Committee (FOMC) meeting, although that decision might not “be consequential to the economy.”
Dimon Warns of Consumer Weakness as Sentiment, Jobs Data Disappoint
JPMorgan is the largest bank in the U.S., meaning that it has a solid view on consumer health and spending. Dimon said that most consumers, depending on their income, are still employed and spending money, but explained that “There’s a lot of different factors in the economy right now.” On top of the revision, August’s nonfarm payrolls showed just 22,000 job additions, below the consensus estimate of 75,000.
Dimon also pointed to consumer weakness beginning to appear, which was visible in August’s Index of Consumer Sentiment survey reading of 58.2 that fell from 61.7 in July. In addition, inflation expectations from the survey rose to 4.8% from 4.5%.
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