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President of JP Morgan Chase has said a “deep recession” may be the price to pay to get inflation “back in the box.”
Daniel Pinto, 59, believes that ‘re-categorizing inflation’ is ‘very important’, even if it causes a ‘slightly deeper recession’.
The Wall Street veteran earned a salary of $28.5 million this year, a 16 percent increase from 2021, and is the latest in a line of other executives to say the U.S. is heading into a recession due to the dire situation. from the Fed.
He told CNBC: ‘I think it is very important to pigeonhole inflation again. If it causes a slightly deeper recession for a longer period of time, that’s the price we have to pay.
“We are dealing with a market that estimates the probability of a recession and how deep it will be.”
David Solomon, CEO of Dimon and Goldman Sachs, also agrees that the US is facing a recession after inflation hits its 40-year high.
Pinto added that the markets are functioning “better” than he expected, before adding, “I don’t think we’ve seen the bottom end of the market.”
JP Morgan Chase President Daniel Pinto has said he believes “pushing inflation back into a box” is important, even if it causes a “deeper recession.”
The president didn’t seem bothered by the country’s 8.2 percent inflation and warnings of an impending recession when asked about the US financial situation in an ice cream parlor in Oregon.
The comments come after President Biden faced the ire of conservatives after he was caught on camera in Portland telling a reporter that the “economy is as strong as hell.”
He didn’t seem bothered by the country’s 8.2 percent inflation amid warnings of an impending recession.
Asked if he was concerned about the strength of the US dollar amid rising inflation, the president, chocolate cone in hand, replied lightly, “I’m not worried about the dollar’s strength. I worry about the rest of the world. Our economy is so strong.’
The recorded altercation further caused the president to downplay the country’s current inflation, which soared to a 40-year high in the summer.
Speaking to the reporter while still holding the cone, Biden claimed that ‘inflation is global’, adding that ‘it is worse off’ [in other countries] than in the United States.’
He added: “The problem is the lack of economic growth and good policies in other countries, not so much ours.”
That statement came just days after the Commerce Department announced the consumer price index was 8.2 percent higher than a year ago — barely lower than last month’s 8.3 percent, with core inflation pushing currently rampant energy and food costs. takes away, 6.6 percent.
Dimon and Goldman Sachs CEO David Solomon also agrees the US is facing a recession – after inflation hits its 40-year high
Rents and other necessities have also risen dramatically in recent months under the Biden administration.
Total inflation in the US, including food and energy, was 8.2 percent higher than a year ago, a figure that remains alarmingly high but marked another drop from the recent peak of 9.1 percent recorded in June. reaches.
The decline in headline inflation was largely due to falling global energy prices, which have since started to rise again.
The Fed is trying to tame rising inflation by cooling the economy, but as it raises interest rates aggressively with little sign of progress, risks are mounting of them causing a sharp downturn and massive job losses.
Falling gas prices helped bring down headline inflation in September, but have since started to rise again
Annual inflation did not begin to rise dramatically above recent 2 percent norms until April 2021, months after Biden took office, when the economy reopened after pandemic shutdowns.
Many Republicans blame Biden and Democrats for the painful inflation crisis, saying their $1.9 trillion stimulus package passed in March 2021 overheated an already roaring economy.
The new report showed that total prices rose 0.4 percent from August to September, the biggest monthly increase since June and double what most economists had expected.
Core inflation rose 0.6 percent this month, in line with the previous monthly increase and in line with the average monthly rate of increase so far this year.