JP Morgan CEO Predicts What’s Coming Next
(PatriotWise.com) – The CEO of JPMorgan Chase last week warned of “very, very serious” headwinds that will plunge the US and global economy into a recession by the middle of 2023.
Jamie Dimon told CNBC’s Julianna Tatelbaum last Monday that a combination of inflation, high interest rates, and the ongoing conflict in Ukraine will likely push the US and the rest of the world into “some kind of recession” in the next six to nine months.
Despite the current challenges facing the US economy, the JPMorgan Chase CEO believes the US economy was “still doing well,” noting that Europe is already in recession.
He told CNBC that US consumers will likely fare better in this recession than they did during the 2008 financial crisis in which the economy was hammered by housing foreclosures and mass layoffs.
Dimon also criticized the Federal Research for waiting “too long” and doing “too little” in raising interest rates to cool 40-year-high inflation. Now the Fed is “clearly catching up,” Dimon added. He said now, we can only “keep our fingers crossed” that the Fed can slow down the economy.
Asked about the severity and duration of an upcoming recession, Dimon wasn’t sure. He said depending on what happens with the war in Ukraine, “it can go from very mild to quite hard.” The best thing to do, Dimon added, was to “be prepared.”
Dimon also predicted that the S&P 500 could easily drop by another 20 percent and that “the next 20 percent would be much more painful than the first.”
Earlier this month, a KPMG survey found that over 90 percent of CEOs believe a recession will occur in the next twelve months. As to how severe this recession might be, only 34 percent believe it will be brief and not too painful. The vast majority expect the looming recession will be a difficult one.
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