Jamie Dimon, chairman and CEO of JPMorgan Chase, said the U.S. economy could experience a "hard landing." Dimon said the worst outcome for the U.S. economy would be "stagflation," in which inflation continues to rise but economic growth slows despite high unemployment.

ctrnitrofueledps4"I see a range of outcomes, and the worst outcomes for all of us are stagflation, high interest rates and recession," he said. That means company profits will fall and we will get through it. I mean, the world has come through it, but I think it's a higher possibility than others think."

However, he said even if the economy fell into recession,"consumers were still in good shape."

He pointed out that the unemployment rate has been below 4% for about two years, adding that wages, house prices and stock prices have been rising.

Still, Dimon pointed out that consumer confidence levels are low. "This seems to be mainly due to inflation... the extra money from the COVID-19 epidemic has been declining."

Minutes of the Federal Reserve's May meeting released Wednesday showed policymakers 'concerns about inflation have intensified, with members of the Federal Open Market Committee saying they lack confidence in easing monetary policy and cutting interest rates.

Timing of Fed interest rate cuts

Dimon said interest rates were still likely to rise "slightly".

"I think inflation is more difficult than people think. I think this is more likely than others think, mainly because the huge fiscal and monetary stimulus plan is still in the system and may still be driving this liquidity."

Is the world ready for higher inflation? "Not necessarily," he warned.

According to the CME FedWatch tool, about half of traders surveyed expect the Fed to cut interest rates by 25 basis points by September. The Federal Reserve had expected to cut interest rates three times throughout 2024, by 25 basis points each time.

When asked about the prospects and timing of a rate cut, Dimon said that despite market expectations "pretty good." But it's not always right."

"The world used to think (inflation) would stay at 2%. Then he said he wanted to increase it to 6%, and then he said he wanted to increase it to 4%... Almost every time he made a 100% mistake. Why do you think it's right this time?"

He said JPMorgan uses implicit curves to estimate interest rates, adding: "I knew that would be wrong.