The JPMorgan Boss Warns That There May Be Something Worse Than A Recession On The Horizon

The JPMorgan Boss Warns That There May Be Something Worse Than A Recession On The Horizon

The JPMorgan Boss Warns That There May Be Something Worse Than A Recession On The Horizon

According to JPMorgan CEO Jamie Dimon, there is a possibility of something worse than a recession happening in the U.S. economy in the near future.

He continued by stating, “There are storm clouds in the sky,” citing interest rates, the Fed, oil, Ukraine, war, and China as factors to consider.

The economic forecasts of JPMorgan Chief Jamie Dimon

According to Yahoo Finance, JPMorgan Chase’s chairman and CEO, Jamie Dimon, reportedly shared his predictions about where the U.S. economy will be headed during a client call last week, according to a report.

Despite the fact that the U.S. economy remains strong, with consumer balance sheets in good shape and businesses in good standing, the executive stressed that in order to forecast effectively, “you have to think differently.” In his own words, the JPMorgan chief said, “What is out there?” There are storm clouds looming in the distance.

It’s all about the rates, the QT, the oil, Ukraine, the war, and China.”

He added: “If I had to put odds on a soft landing, I would say 10%. It was a harder landing, a mild recession, 20%, 30%.” He continued:

The recession is going to be harder, 20% or 30% harder. There is also a possibility that something worse might happen at 20% to 30%.

As he clarified, “I think it would be a mistake to say ‘here is my single point forecast,'” he added.

His predictions were similar to what he said in June when he warned that an economic hurricane is “coming our way.” He advised investors to prepare themselves for the worst.

While Dimon sees the possibility of something worse than a recession in the near future, he stressed during a recent visit to JPMorgan Chase’s Olneyville bank branch that “whatever the future brings, JPMorgan Chase is well prepared.”

Various analysts have predicted that the U.S. economy could be in a recession this year, based on their projections. As the head of U.S. economics at Bank of America, Michael Gapen, told Fox Business Monday, there is a high likelihood that there will be a mild recession this year.

In his view, the Federal Reserve is inadvertently triggering a downturn with its war on inflation by inadvertently causing a recession.

There is a good chance that this cycle will end in a mild downturn … how do I arrive at that conclusion? Basically, it is just a piece of history that we have to learn from.

I believe that it is very difficult to achieve a soft landing, according to the analyst.

David Mericle, Goldman Sachs’ economist, explained in a client note on Sunday that “our general conclusion is that there is a feasible, though difficult, the path to a soft landing.

However, several factors beyond the Fed’s control can either ease or complicate that path and raise or lower the chances of success.”

More Read Kenya’s Deputy President Ruto Has Been Declared The Winner Of The Election

Related Posts