The JP Morgan CEO has been criticized for claiming that average Americans are in “pretty good shape” financially, despite soaring inflation and stagnant interest rates crippling household budgets.
Jamie Dimon has been called “out of touch” for comments made during an interview on The Wall Street Journal’s podcast, The Journal.
Dimon, who is estimated to be worth about $2.1 billion according to Forbes, said consumers “still have excess money due to COVID.”
“The consumer is in pretty good shape right now,” Dimon told interviewer Emma Tucker.
But his remarks were criticized online, including by a furious TikToker left in disbelief, after the head of America’s largest bank claimed Americans were “still spending” funds distributed during the pandemic.
“My jaw dropped open at the shit he was saying. It’s so out of touch with reality that it’s the biggest bank in America,” one TikToker said in a viral response.
JP Morgan CEO Jamie Dimon has come under fire for claiming that average Americans are in “pretty good shape” financially despite soaring inflation and stagnant interest rates crippling household budgets.
TikTok creator Anna, who goes by the handle @creativechronicles, called Dimon “out of touch” for the comments
Dimon was quick to talk on the podcast about how America is still feeling the impacts of COVID, even four years later.
“The consumer has, you know, unemployment below 4 percent for two years. They still have excess money due to COVID,” Dimon told the podcast.
“If you look at the amount of money spent during COVID, it’s $6 trillion. Through various means and various programs, they continue to spend it.
He also insisted that “property prices are up, stock prices are up and jobs are plentiful.”
The comments sparked swift reprimands online, including from Anna.
‘I’m sorry, what? The stimulus checks that were distributed in 2020 and 2021, three and four years ago, are we still spending them? Who is he talking about, people are not well,” replied Anna, who uses the handle @creativechronicles.
“This country is literally unaffordable, child care, groceries, you have Kellogg’s here telling us to eat fucking cereal for dinner. Everything is in price.
Asked why consumers are feeling so pessimistic about the economy, Dimon said it’s due to “different consumers.”
“America’s poorest 20 percent have not done particularly well over the past 20 years. Income has barely increased. They’re actually starting to increase for the first time in almost 20 years,” Dimon said.
Dimon, who is estimated to be worth about $2.1 billion according to Forbes, said consumers “still have excess money due to COVID.”
The decision to freeze interest rates spells misery for households already struggling under the weight of record interest rates on credit cards, mortgages and personal loans.
Fed Chairman Jerome Powell said rates would not be cut until officials had “greater confidence that inflation is moving sustainably toward 2%.”
“Remember suicide, fentanyl, crime, inflation, there are a lot of negative effects. Some people can’t get a mortgage, can’t buy a house, so yes, there is a part of society that is struggling. There is a part of society that is not.
However, many Americans will find it hard to believe that only the poorest 20 percent of the country are struggling.
The annual inflation rate reached 3.5 percent in March, still well above the Fed’s 2 percent target. This caused the Federal Reserve to raise the base interest rate to levels not seen in years. The hope is that by raising interest rates, inflation will slow.
So far, this hasn’t happened enough as the Fed has started lowering rates.
A HelpAdvisor study earlier this year found that, on average, U.S. consumers are spending an average of $1,080 a month on groceries thanks to inflation.
A Wall Street Journal analysis found that the same $100 grocery store in 2019 would cost about $136 today due to food price inflation.
Examples of skyrocketing prices include the cost of a dozen eggs, which increased by 70% between February 2022 and February 2023.
In a policy statement released today, the organization said rates will not be cut until officials have “greater confidence that inflation is moving sustainably toward 2 percent.”
The move only adds to the misery of households already struggling under the weight of rising interest rates on credit cards, mortgages and personal loans.
This is also the sixth time in a row that the Fed has chosen to keep rates at their current level as it struggles to control inflation.
The performance of the S&P 500 is closely tied to 401(k) balances. Pictured is the charging bull of Wall Street
In theory, higher interest rates should encourage consumers to spend less and slow price increases.
Mortgages have been one of the biggest casualties of rising rates. The offered rate on a 30-year fixed-rate mortgage reached 7.17 in the week ending April 25.
Dimon warned that the Fed’s interest rate hike may not be enough to ensure a soft landing, the term used to describe when the Fed is able to raise interest rates enough to curb the inflation without causing recession.
He suggested that this was because much of the growth he described is driven by fiscal spending, e.g. government taxation and spending.
“I’m a little more concerned that things aren’t going to be as smooth and inflation isn’t going away quite like people expect,” Dimon said.
“I’m not just talking about this year, I’m talking about 25 and 26. Rates may have to go up a little more, I’m talking about the 10-year rate, the five-year rate, and that can have consequences . So we’ll see.
dailymail us
