Friday, October 14, 2022
According to Jamie Dimon, there are "extremely significant" risk factors for recession include high inflation, rising interest rates, and the conflict in Ukraine.
According to Jamie Dimon, CEO of JPMorgan Chase, a recession in the US and worldwide economies is expected to occur by the middle of 2023.
According to the CEO of a US-based multinational investment bank and financial services organization, reasons that could trigger a recession include growing inflation in the US and around the world, higher-than-expected interest rates, and Russia's conflict in Ukraine.
According to Dimon, "These are very, very severe things that I think are likely to push the US and the world - I mean, Europe is already in recession - and they're likely to put the US in some form of recession six to nine months from now."
In order to combat inflation, which is currently at its highest levels in many nations in decades, the US Federal Reserve has been aggressively hiking interest rates, along with many other central banks across the world.
Inflation in the US reached its highest level in more than 40 years, according to Dimon, who claimed that the Fed "waited too long and did too little."
The Federal Open Market Committee (FOMC) members quickly switched from a dovish tone to a hawkish stance when the war in Ukraine spiked energy and food prices and intensified inflationary pressures, despite the Fed and its Chair Jerome Powell repeatedly declaring in the final quarter of 2021 that inflation is "transitory."
Charles Evans, president of the Federal Reserve Bank of Chicago, stated earlier on Monday that the Fed could reduce inflation "quite swiftly" while still averting a recession, or "soft landing."
Dimon, though, admitted that he is unsure of how long a US recession may persist.
It will depend greatly on how this battle plays out and can range from being quite mild to being pretty hard. So, I think it's difficult to guess; be ready, he said.