US Recession Coming? Jamie Dimon of JP Morgan Chase Bank Says Yes!

YEREVAN (CoinChapter.com) – Jamie Dimon, the chief executive officer of banking giant JPMorgan Chase, asserted the global economy is facing a “very, very serious” situation. As CoinChapter reported at the time, the CEO voiced similar concerns in June, saying that a “hurricane” was coming.

JPMorgan Chase Bank Sees Recession in US Ahead

On Monday, the largest US investment bank CEO asserted that his viewpoint stemmed from the ongoing war in Ukraine, the Federal Reserve’s hawkish interest rate hikes, and the runaway inflation. Dimon also reiterated that the aforementioned factors would push the US economy into recession.

While the recession might well be underway, the CEO also pointed to a silver lining and said that the US was “actually still doing well.”

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.

said Dimon.

Not The First Warning From Jamie Dimon

In June 2022, Jamie Dimon also mentioned several aspects of quantitative easing programs “backfired,” including negative rates. However, the upcoming “hurricane’s” primary focus was the war in Ukraine and the related spikes in oil prices.

Wars go bad, [they] go south in unintended consequences. […]We’re not taking the proper actions to protect Europe from what’s going to happen to oil in the short run […] as oil prices could potentially hit $150 or $175 a barrel.

added the chief executive officer.

In the latest retort, the JPMorgan Chase Bank chief also scolded the Federal Reserve for doing “too little too late” to fight the most persistent inflation in over 40 years. In detail, the consumer price index (CPI), the most precise inflation measure tool, stood at 8.3% in August, while the September numbers are scheduled to be released on Oct 13.

What about the Federal Reserve?

Federal Reserve Vice Chair Lael Brainard commented on the persistent inflation on Oct 10 as well. The official repeated the Fed’s plan to continue tightening monetary policy until there is “clear evidence” of inflation slow-down. Additionally, Brainard warned that the US economy would likely slow further as a result of elevated interest rates.

Monetary policy will be restrictive for some time to ensure that inflation moves back to target over time. It will take time for the cumulative effect of tighter monetary policy to work through the economy and to bring inflation down.

commented the Vice Chair.

The Fed already raised the interest rates five times this year in efforts to stave off rising inflation, bringing it down to the 2% target.

Meanwhile, Dimon’s comments came after the September jobs report, released on Oct 7. The latter showed that businesses kept hiring at a rapid pace, unemployment fell back to a half-century low, and average pay rose.

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But the unemployment rate’s report raised concerns that the Fed’s anti-inflation actions were unsuccessful. With the Central Bank more likely to keep raising borrowing costs rapidly, the risk of recession will also rise.