JP Morgan’s chief executive 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 was criticized as “out of touch” for comments made during an interview on the Wall Street JournalThe Journal Podcast.
Dimon, who is estimated to be worth around $2.1 billion according to Forbes, said consumers “still have money left over from COVID.”
“The consumer is in pretty good shape right now,” Dimon told interviewer Emma Tucker.
But his comments were criticized online, including by one furious TikToker who was left in disbelief, after the head of the US’s largest bank claimed Americans are “still spending” funds given out during the pandemic.
‘I was speechless at the shit he was saying. “You are so fucking out of touch that this is the largest 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, criticized Dimon as “out of touch” for the comments.
Dimon was quick on the podcast to talk about how the United States is still feeling the impacts of COVID, even four years later.
‘The consumer has had unemployment below 4 percent for two years. They still have money left over from COVID,’ Dimon said on the podcast.
‘If we look back at the amount of money that was spent during COVID, it was $6 trillion. Through various means and various programs, they are still spending it.’
He also insisted that “housing prices are up, stock prices are up and jobs are plentiful.”
Those comments sparked a swift rebuke online, including from Anna.
‘Apology? The stimulus checks that were issued in 2020 and 2021, three and four years ago, are we still spending them? Who is he talking about? People are not doing well,” replied Anna, who uses the alias @creativechronicles.
‘This country is literally unaffordable: childcare, groceries, and Kellogg’s is here telling us to eat damn cereal for dinner. Everything has gone up in price.
When asked why consumers feel so pessimistic about the economy, Dimon said it was “different consumers.”
‘The poorest 20 percent of America has not fared particularly well in the last 20 years. Revenue barely increased. In fact, they are starting to increase for the first time in almost 20 years,” Dimon said.
Dimon, who is estimated to be worth around $2.1 billion according to Forbes, said consumers “still have money left over from COVID.”
The decision to freeze interest rates means misery for households already struggling under the weight of record interest rates on credit cards, mortgages and personal loans.
Federal Reserve Chair Jerome Powell said rates will not be cut sharply until officials have “increased confidence that inflation is moving sustainably toward 2 percent.”
‘Remember suicide, fentanyl, crime, inflation, there are many negative effects. Some people can’t get mortgages, can’t buy the 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 it is only the bottom 20 percent of the country that is struggling.
The annual inflation rate rose to 3.5 percent in March, still well above the Federal Reserve’s two percent target. That has 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, that hasn’t happened enough as the Federal Reserve has started lowering rates.
A study of Help Advisor Earlier this year, he found that, on average, American consumers spend $1,080 a month at the grocery store 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 70 percent between February 2022 and February 2023.
In a policy statement released today, the organization said rates will not be reduced until officials have “increased confidence that inflation is moving sustainably toward 2 percent.”
The decision means more misery for households already struggling under the weight of rising interest rates on credit cards, mortgages and personal loans.
It also marks the sixth time in a row that the Federal Reserve has opted 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. The Wall Street charging bull appears in the photo.
In theory, higher interest rates should encourage consumers to spend less and curb price increases.
One of the biggest victims of higher rates has been mortgages. The offered rate on a 30-year fixed-rate mortgage hit 7.17 in the week to April 25.
Dimon warned that the Fed’s interest rate move may not be enough to ensure a soft landing, a term used to describe when the Fed is able to raise interest rates enough to curb inflation without causing a recession.
He suggested that’s because much of the growth he described is being driven by fiscal spending, such as taxes and government spending.
“I’m a little more concerned that it’s not going to be as smooth and that inflation isn’t going to go away as much as people hope,” Dimon said.
‘I’m not just referring to this year, I’m referring to the 25th and the 26th. Rates may have to rise a little more, I’m talking about the 10-year rate, the five-year rate, and that can have consequences. So we’ll see.’