Jamie Dimon, the CEO of JPMorgan Chase & Co., said that “strong” headwinds will likely cause the US and global economies to enter a recession by the middle of next year.
In an interview with CNBC on Monday, October 10, Dimon said, “These are very, very serious things that 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 form of recession six to nine months from now.”
The impact of rising inflation, higher-than-expected interest rates, the impacts of the Federal Reserve ending quantitative easing, and Russia’s conflict in Ukraine, among other indicators and global challenges, is raising alarms even if the US economy is now performing well, Dimon stated.
The credit markets are “likely” where you’ll see more of a crack and possibly even more fear; it could be ETFs, a nation, or something else entirely, Dimon told CNBC. If you build a list of all the previous crises, sitting here we would not have been able to foresee where they would come from, yet I believe this time you might foresee that it will most likely occur. So I would be really cautious if I were out there. Go raise some money if you need it.
The S&P 500’s slide “may have a ways to go,” according to Dimon, and “it might be another easy 20per cent.” Nearly 25per cent of the index have fallen this year. He told CNBC, “The next 20per cent will be considerably more painful than the first.” “People aren’t acclimated to it, so another 100 basis point increase in rates hurts much more than the first 100.”
