According to Jamie Dimon, chief executive of JPMorgan Chase & Co. (JPM.N), the world and American economies may enter a recession by the middle of the following year, according to a report on CNBC on Monday.
Details on JPMorgan CEO Dimon issues a six- to nine-month recession warning.
In an interview with the business news channel, he stated that among the signs of a future recession are runaway inflation, significant interest rate increases, the Russian invasion of Ukraine, and the unidentified impacts of the Federal Reserve’s quantitative tightening program.
I mean, Europe is already in a recession, and they’re likely to force the U.S. into some sort of recession six to nine months from now, Dimon said. “These are very, very dangerous things that I think are likely to push the U.S. and the world.”
He made these remarks as the major US banks prepared to release their third-quarter earnings on Friday. The benchmark S&P 500 index (.SPX) has lost approximately 24% so far this year, and all three of the major U.S. indices are currently trading in the bear market territory.
According to the CNBC story, Dimon stated that the S&P 500 might decline by “another easy 20%” from its current levels, with the subsequent 20% down likely to “be considerably more painful than the first”.
After JPMorgan, the largest U.S. investment bank, missed quarterly Wall Street projections in July, Dimon had earlier this year warned investors to prepare for an economic “storm.”
