JPMorgan CEO Jamie Dimon shared his predictions for the U.S. economy, including the possibility of “something worse” than a recession. Citing interest rates, QT, oil, Ukraine, war, and China, the executive said, “There are storm clouds.”
JPMorgan chief Jamie Dimon’s economic forecast
JPMorgan Chairman and CEO Jamie Dimon shared his predictions on where the U.S. economy is headed during a conference call with clients last week, Yahoo Finance reported Saturday.
While noting that the U.S. economy is strong because consumers’ balance sheets and businesses are in good shape, the executive stressed that when making predictions, “you have to think differently,” the JP Morgan chief explained, “You have to think about what’s going to happen in the U.S., and that’s what we’re doing. ‘What’s out there? There are storm clouds. Interest rates, QT, oil, Ukraine, war, and China.”
Dimon shared.” If I had to put odds: soft landing 10%. Hard landing, mild recession, 20%, 30%.” He stated. He added:
Harder recession, 20%, 30%. And there could be worse, 20% to 30%.
“It’s a bad mistake to say, ‘This is my one-point forecast,'” he stated.
This forecast is the same one he warned in June that an economic hurricane was coming. He advised investors to brace themselves.
Dimon sees the potential for something worse than a recession, he stressed during a recent visit to JPMorgan Chase’s Olneyville bank branch.” Whatever the future holds, JPMorgan is prepared.”
Various analysts are predicting that the U.S. economy could fall into recession this year. Michael Gapen, head of the U.S. economy at Bank of America, told Fox Business on Monday that a mild recession is likely this year. He expects the Federal Reserve to pull the trigger on a recession in its fight against inflation. ‘This cycle will probably end in a mild recession … How could that happen? Basically, history has proven it. It’s really hard to achieve a soft landing,” the analyst opined.
Goldman Sachs economist David Mericle elaborated in a Sunday client note.” Our broad conclusion is that there is a feasible but difficult path to a soft landing, although several factors beyond the Fed’s control can ease or complicate that path and increase or decrease the probability of success.”
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