Europe is already in recession, and the US may quickly comply with, Jamie Dimon says
The US financial system may plunge into recession within the subsequent six to 9 months, JPMorgan Chase CEO Jamie Dimon informed CNBC this week.
In line with Dimon, the financial system is “truly nonetheless doing effectively,” although hovering inflation, higher-than-expected rate of interest hikes, and the state of affairs in Ukraine are a “very critical” mixture that might result in recession.
“You may’t speak in regards to the financial system with out speaking about stuff sooner or later – and that is critical stuff… These are very, very critical issues which I believe are more likely to push the US and the world – I imply, Europe is already in recession – they usually’re more likely to put the US in some form of recession six to 9 months from now,” he mentioned.
The US Federal Reserve raised rates of interest by 75 foundation factors final month, the third consecutive improve of that quantity. Officers additionally signaled that they may proceed to hike the charges if the state of affairs with shopper costs doesn’t enhance.
The JPMorgan Chase CEO mentioned that the Fed “waited too lengthy and did too little” to deal with inflation, which just lately jumped to a 40-year excessive, although he famous that he’s not criticizing the Fed’s present method.
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“From right here, let’s all want [the Fed] success and preserve our fingers crossed that they handle to decelerate the financial system sufficient in order that no matter it’s, is delicate – and it’s doable.”
Dimon mentioned he can’t predict how prolonged the recession is perhaps.
“It might go from very delicate to fairly exhausting and lots will probably be reliant on what occurs with [the conflict in Ukraine]. So, I believe to guess is tough; be ready.”
He added that the one assured end result of the state of affairs will probably be excessive market volatility.
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