JPMorgan CEO: US economy still in 'good times,' but prepared for extreme scenarios like a 40% stock market drop

October 20: JPMorgan Chase CEO Jamie Dimon said in an exclusive interview with The Wall Street Journal that the current U.S. economy is strong, with significant growth in corporate profits, unemployment remaining low, and overall leverage among businesses and consumers not high. He described it as "a good time right now."

However, Dimon also pointed out that multiple potential risks are accumulating beneath the surface, including "sticky" inflation that has persisted for five years, large-scale fiscal deficits, and geopolitical uncertainties such as overseas wars.

Dimon emphasized that it is extremely difficult to predict the specific timing and triggers of an economic downturn, because the ultimate recession is often the result of a combination of factors that cannot be accurately judged at present.

When discussing the bank's response strategy, Dimon said JPMorgan conducts extremely in-depth analysis of various risks to ensure that whether interest rates rise or fall, and whether inflation or stagflation occurs, the bank can withstand shocks and continue serving clients during difficult times. Dimon made clear that the bank is prepared for extreme scenarios such as a 40% stock market decline and bond credit spreads widening two to three times, rather than guessing when these scenarios will occur.

Dimon concluded that an economic downturn will eventually come, but the specific combination of events that triggers it "no one can guess today." The bank's core principle is to be fully prepared to continue supporting businesses and communities in various environments, rather than making precise timing forecasts.