JPMorgan Chase CEO Jamie Dimon recently said he hasn't ruled out the possibility of stagflation, even as confidence grows that inflation is beginning to ease.

Dimon warned at the Institutional Investor Council's Fall Meeting in Brooklyn, New York, that while there are signs of a cooling economy, serious risks remain. He said, "I think the worst outcome is stagflation - a recession, higher inflation... I won't rule that out."

Dimon expressed concerns about persistent inflationary pressures, citing factors like increased government spending and rising deficits. He noted that while inflation figures are improving, indicators like employment and manufacturing suggest the economy is under pressure. He cautioned, "This is all inflation, basically in the short term, for the next few years (lasting)."

He emphasized that despite some positive economic signals, significant uncertainties remain and inflationary pressures could weigh on the US economy.

Dimon has been warning of an economic slowdown, stating in August that the likelihood of a "soft landing" is only 35% to 40%, suggesting that a recession is a more likely outcome. He pointed to various uncertainties including geopolitics, housing, and spending. Meanwhile, JPMorgan has increased its probability of a US recession this year.