JPMorgan Chase CEO has laid out the "worst outcome" for America's economic future, beyond recession.
"The worst outcome is stagflation," said Dimon. "And by the way, I wouldn't take it off the table."
68-year-old Jamie Dimon made his remarks on Tuesday at the Council of Institutional Investors in New York.
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JPMorgan Chase is the largest bank in the United States according to Bankrate, with $3.4T in assets.
Stagflation, a portmanteau of stagnation and inflation, refers to a state where economic growth slows while inflation and unemployment rise.
The economic consequences of stagflation may cause retirement savings to go down as well as the stock market to crash; it was last seen in the U.S. during the 1970s, according to Investopedia.
While inflation in August grew less than expected at 2.5%, the outlook for the federal debt is bleak, with the growing number measuring $35,309,184,612,870.00 as of September 12.
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Interest payments due in October on the national debt now exceed the costs of both Medicare and the national defense budget. National debt may contribute to further inflation on the horizon.
This is the first time in American history that interest payments on the national debt have risen above $1T.
"So, it's hard to look at [it] and say, 'Well, no, we're out of the woods.' I don't think so," said Dimon.
While inflation has fallen to almost hit the Fed's ultimate goal of 2%, a report shared by the Federal Reserve Bank of New York on Monday shows that consumers' views on the market were overall mixed.
Americans responded that they expect both their spending numbers to go up by 5% but their household incomes to only rise by 0.1 percentage points from last year in the survey.
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According to CNBC reporting from August, Dimon believes stagflation's future likelihood is around 35 percent, meaning that recession is more likely.
