Labor Secretary doesn’t rule out possibility of economic ‘hurricane’
By Chandelis Duster, CNN
Labor Secretary Marty Walsh on Friday told CNN there is “no question” an economic “hurricane” is possible.
Asked if the Biden administration agrees with JPMorgan Chase CEO Jamie Dimon’s recent headline-making prediction of a hurricane, Walsh said, “We have to continue to move forward a step at a time here to prevent” such an event from hitting the US economy.
“What I heard Jamie Dimon just say was that we were potentially going to get hit with a hurricane. It could be a severe rainstorm or it could be worse than that. I think there’s no question about that,” Walsh told CNN’s Poppy Harlow on “Newsroom” when asked if Dimon’s comments on Thursday were correct. “We can’t really predict the future right now. I think it’s uncertain how it’s going to be in the future.”
The comments from Walsh come as the Biden administration navigates surging prices among fears the US could face a slowdown and after Treasury Sec. Janet Yellen admitted earlier this week she failed to anticipate how long inflation would impact consumers.
At a conference on Thursday, Dimon predicted an economic “hurricane” fueled by the war in Ukraine, rising inflation and interest rate hikes from the Federal Reserve.
Dimon said while the outlook appears optimistic, the economy is heading for a rough period.
“Right now it’s kind of sunny, things are doing fine. Everyone thinks the Fed can handle this,” he said. “That hurricane is right out there down the road coming our way.”
He continued, “We just don’t know if it’s a minor one or Superstorm Sandy. You better brace yourself,” Dimon said, adding that JPMorgan Chase is preparing for a “non-benign environment” and “bad outcomes.”
While there is worry about the direction the US economy is heading, there are signs the economy is cooling.
US employers added 390,000 jobs in May, representing a robust but slower pace of hiring, according to the Bureau of Labor Statistics’ monthly jobs report released Friday. The numbers, while the lowest since April 2021, were better than many were forecasting.
President Joe Biden on Friday said the latest jobs report indicates the nation is settling into a period of “stable, steady growth” and more moderation should come.
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CNN’s Chris Isidore contributed to this report.
