JPMorgan boss warns that “something worse” than a recession could happen

JPMorgan CEO Jamie Dimon has shared his predictions for the U.S. economy, including the possibility of “something worse” than a recession. “There are storm clouds“, said the leader, citing interest rates, TQ, oil, Ukraine, war and China.

JPMorgan chief Jamie Dimon’s economic forecast

While noting that the U.S. economy is strong, with consumer balance sheets and businesses in good shape, the executive stressed that “you have to think differently” when making forecasts. The head of JPMorgan described, “What’s out there? There are storm clouds. Rates, TQ, oil, Ukraine, war, China.

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Jamie Dimon shared, “If I were to put probabilities: soft landing 10%. Harder landing, mild recession, 20%, 30%.“He added:

Harder recession, 20%, 30%. And maybe something worse at 20 or 30 percent.

It’s a bad mistake to say ‘here’s my one-point forecast’” he clarified.

His predictions echo what he said in June when he warned that an economic hurricane “was headed our way“. He advised investors to be prepared.

Although Jamie Dimon is looking at the possibility of something worse than a recession, he pointed out during a recent visit to the JPMorgan Chase bank branch in Olneyville, “Whatever the future holds, JPMorgan is ready.

Various analysts have predicted that the global economy could experience a recession this year. Bank of America’s head of U.S. economics, Michael Gapen, told Fox Business on Monday that there is a good chance of a mild recession this year. He expects the Federal Reserve to inadvertently trigger a slowdown with its war on inflation. “This cycle probably ends with a mild recession… How do I get there? That’s basically the story. It’s really hard to make a soft landing“, opined the analyst.

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David Mericle, an economist at Goldman Sachs, detailed in a client note: “Our overall conclusion is that there is a feasible but difficult path to a soft landing, although there are several factors beyond the Fed’s control that could make that path easier or more difficult and increase or decrease the chances of success.

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