'Goldilocks is leaving the building': JPMorgan sees a negative growth shock coming for the economy
TIMOTHY A. CLARY / AFP via Getty Images JPMorgan says the Iran war has soured the economic outlook . The bank says it's anticipating a negative economic growth shock due to sticky inflation. Higher energy prices could hurt consumer spending and weigh on the job market, its economists said. Say goodbye to the economy's best-case scenario this year. Economists at JPMorgan said they've officially taken a " Goldilocks scenario " — an ideal situation for markets where inflation cools and the economy continues to expand — off the table. The bank says to blame the Iran war, with the latest surge in inflation likely to spark a negative growth shock. In a note to clients on Friday, economists said they believe higher energy prices could push core inflation past 3%, which was the bank's "long-standing forecast" for global core inflation at the start of the year. Rising transportation and input costs stemming from higher oil prices could also help push core g...
