Jamie Dimon states that stagflation, a situation he is not ruling out, could be the most unfavorable outcome.

• JPMorgan Chase CEO Jamie Dimon said Tuesday he wouldn't rule out stagflation.
• At a time when investors are focusing on indications of decreasing growth due to inflation's cooling, Dimon made his remarks.
• He expressed concern that inflationary pressures will persist due to factors such as higher deficits and increased infrastructure spending, which will further strain an economy already affected by higher interest rates.

Jamie Dimon, CEO, stated on Tuesday that he wouldn't rule out stagflation, despite a recent increase in confidence that inflation would decrease.

"Dimon stated at a fall conference from the Council of Institutional Investors in Brooklyn, New York that the worst outcome is stagflation, which is a recession combined with higher inflation. He emphasized that this possibility should not be ruled out."

The CEO of the largest U.S. bank discusses his views on slowing growth at a time when investors are closely monitoring inflation and employment indicators. Recent data showed pricing pressures approaching the Federal Reserve's 2% inflation target, while manufacturing and employment reports hinted at some softening.

This week, investors will receive crucial information with the release of the consumer price index and producer price index on Wednesday and Thursday.

Higher interest rates have already put a strain on the economy, and Dimon fears that inflationary forces such as increased spending on infrastructure and higher deficits will only add to the pressure.

"Dimon stated that inflation is likely to persist in the short term, making it challenging to predict a complete recovery. He believes that it will be difficult to claim that the woods are out of the woods."

The bank leader had previously warned of an economic slowdown. In August, he stated that the chances of a "soft landing" were approximately 35% to 40%, indicating that a recession was more likely to occur.