JPMorgan Chase CEO Jamie Dimon made predictions about a future economic recession while speaking to CNBC‘s Julianna Tatelbaum on Monday. Dimon said a “very serious” mix of headwinds would likely tip the US and global economies into a recession by mid-2023.
Dimon spoke to Tatelbaum at the JPM Techstars conference in London and cited numerous indicators of a future recession, such as rising inflation, interest rate increases that are higher than expected, the yet unseen effects of the Fed’s rate hikes, and the war in Ukraine.
“These are very, very serious things which I think are likely to push the US and the world – I mean, Europe is already in recession – and they’re likely to put the US in some kind of recession six to nine months from now,” Dimon said.
Dimon added that he believed the Fed “waited too long and did too little” to curb record-high inflation, but said the central bank is “clearly catching up.”
“And, you know, from here, let’s all wish him success to keep our fingers crossed that they managed to slow down the economy enough so that whatever it is, is mild – and it is possible,” said Dimon.
The CEO stated he was unsure how long the recession would last, or how difficult it would be to weather. “It can go from very mild to quite hard and a lot will be reliant on what happens with this war,” he said. “So, I think to guess is hard, be prepared.”
Dimon said one guaranteed fallout from a likely recession would be volatile markets and disorderly financial conditions. He predicted that the benchmark S&P 500 could fall by “another easy 20%” from current levels and added that “the next 20% would be much more painful than the first.”
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