JPMorgan CEO Jamie Dimon warns the US economy and global nations of a possible recession in the next 6 to 9 months. Global nations are going through comparatively tough economic conditions. Countries are witnessing a rise in inflation, and the central banks are trying their best to battle it.
Several analysts predict that several nations have already fallen into a recession while warning other countries to brace themselves. Dimon while speaking to CNBC stated that a mix of headwinds is likely to tip the US and global economies into a recession by the next 6 to 9 months.
JPMorgan’s Dimon cited inflation and interest rates
Dimon stated that the current US economy is doing better than how it was during the global financial crisis of 2008.
“But you can’t talk about the economy without talking about stuff in the future — and this is serious stuff,” Dimon stated.
Some of the main factors that Dimon stated are luring the country into a recession are inflation, the rise in interest rates, the Russia-Ukraine war, etc.
“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 stated.
Dimon also spoke about the US stock market, stating that it could fall by another 20% from the preset levels. He also added that the next 20% would be much “more painful than the first.”
Dimon stated that the recession could go from being very mild to quite hard. He also added that it is better to expect it to be hard and then be prepared for it. He also warned that the recession would result in a highly volatile market.