‘Something Worse’ Than a Recession Could Be On Its Way, Says JPMorgan CEO Jamie Dimon

Vignesh Karunanidhi
‘Something Worse’ Than a Recession Could Be On Its Way, Says JPMorgan CEO Jamie Dimon
Source: CNBC

Banking giant JPMorgan’s CEO, Jamie Dimon, stated on a client call that something worse than a recession could be coming.

Dimon said that there is only a slight 10% chance that a recession is unlikely to cause an economic slowdown. Adding to that statement, he said that there is a 20–30% probability that something worse could happen.

JPMorgan boss says that there are storm clouds ahead

Adding to the fear, Dimon stated on a client call that even though the US economy is robust and businesses and consumer balance sheets are in good shape, there are storm clouds ahead.

JPMorgan CEO now believes that a mild recession has a 20% to 30% possibility, while a severe recession has the same odds due to increased fed rates, quantitative tightening, oil shocks, the conflict in Ukraine, and escalating U.S. tensions with China.

He predicts that something worse could be the remaining outcome and adds that it is a mistake to point to a particular forecast about the fate of the US economy.

The Fed’s goal of bringing down inflation from 8% to 4% by the end of the year is highly unlikely, stressed Dimon. “I wish we had the spirit that we were all here to work together, but it seems we just got nastier somehow.”

Even though CEOs of several firms have given their predictions on the upcoming recession, they were quite mild, unlike Dimon’s stringent and worsening outcome prediction.

David Solomon, CEO of Goldman Sachs, had warned users of the same possible recession. Larry Fink, CEO of BlackRock, had the opposite prediction, asking investors to keep calm and carry on.

Industry behemoths such as Target and Walmart have already reduced their profit forecasts, and several firms are already laying off and restructuring to cut costs.