JP Morgan CEO Says Banking Crisis Increases Odds of Recession

Joshua Ramos
Interest Rates Will Rise Above 5%, Says JPMorgan CEO Jamie Dimon
Source: Fortune

Speaking to CNN, JP Morgan CEO Jamie Dimon says that the banking crisis has increased the odds of a recession. Specifically, Dimon is referencing the recent closure of Silicon Valley Bank, and subsequently Signature Bank, both representing the largest banking failures since the financial crisis of 2008.

Dimon spoke to CNN in his first interview since the collapse set off the concern and worry currently in the banking sector. Moreover, the JP Morgan CEO said that the ongoing banking issues have added, “another weight on the scale,” toward recession.

JP Morgan
Source: The Economic Times

Dimon Talks Potential Recession

In his recent letter to shareholders, Jamie Dimon spoke about the banking crisis that has recently unfolded. Specifically, he stated the closure of Silicon Valley Bank, Signature Bank, and Credit Suisse will maintain consequences that are felt for “years to come.”

Now, speaking to CNN for the first time since the publication of that letter, Dimon has discussed how that crisis could impact the country’s economic stance. Specifically, the JP Morgan CEO says the banking crisis increases the odds of a recession.

Dimon stated, “We are seeing people reduce lending a little bit, cut back a little bit, and pull back a little bit.” Moreover, he noted the banking crisis won’t, “necessarily force a recession,” while adding, “It is recessionary.”

The US economic outlook is currently quite grim, with the fight for inflation growing alongside the deteriorating value of the dollar. Now, Dimon has noted these factors could set the country on course for recession, an undoubtedly grim prognosis.