On Monday, JPMorgan Chase CEO Jamie Dimon warned that “very, very serious” factors are going to push the United States into a recession within the next six to nine months.
Dimon, the head of the largest bank in the United States, said that the American economy is “still doing well” and that consumers are likely to handle a recession better than in the 2008 financial crisis.
“But you can’t talk about the economy without talking about stuff in the future — and this is serious stuff,” Dimon told CNBC.
He said that inflation, increasing interest rates, and Russia’s invasion of Ukraine were all factors indicating a recession.
“These are very, very serious things which I think are likely to push the U.S. and the world — I mean, Europe is already in recession — and they’re likely to put the U.S. in some kind of recession six to nine months from now,” Dimon said
The Federal Reserve raised benchmark interest rates by three-quarters of a percentage point last month, the third consecutive increase of that size. However, Dimon criticized the Federal Reserve, saying it “waited too long and did too little” as inflation was hitting a 40-year high, but added that it is “clearly catching up.”
“And, you know, from here, let’s all wish him success and keep our fingers crossed that they managed to slow down the economy enough so that whatever it is, is mild — and it is possible,” Dimon continued.
Dimon added that he was unsure how long a U.S. recession would last, but that Americans should be prepared for a wide range of outcomes.
“It can go from very mild to quite hard and a lot will be reliant on what happens with this war,” Dimon said. “So, I think to guess is hard, be prepared.”
