1 year ago
82 Dimon said successful June that helium was preparing the slope for an economical "hurricane" caused by the Federal Reserve and Russia's warfare successful Ukraine.
Al Drago | Bloomberg | Getty Images
JPMorgan Chase CEO Jamie Dimon connected Monday warned that a "very, precise serious" premix of headwinds was apt to extremity some the U.S. and planetary system into recession by the mediate of adjacent year.
Dimon, the main enforcement of the largest slope successful the U.S., said the U.S. system was "actually inactive doing well" astatine contiguous and consumers were apt to beryllium successful amended signifier compared to the 2008 planetary fiscal crisis.
"But you can't speech astir the system without talking astir worldly successful the aboriginal — and this is superior stuff," Dimon told CNBC's Julianna Tatelbaum connected Monday.
Among the indicators ringing alarm bells, Dimon cited the interaction of runaway inflation, involvement rates going up much than expected, the chartless effects of quantitative easing and Russia's warfare successful Ukraine.
"These are very, precise superior things which I deliberation are apt to propulsion the U.S. and the satellite — I mean, Europe is already successful recession — and they're apt to enactment the U.S. successful immoderate benignant of recession six to 9 months from now," Dimon said.
His comments travel astatine a clip of increasing interest astir the imaginable of an economical recession arsenic the Federal Reserve and different large cardinal banks rise involvement rates to combat soaring inflation.
Speaking to CNBC past month, Chicago Federal Reserve President Charles Evans said he's feeling apprehensive astir the U.S. cardinal slope going excessively far, excessively accelerated successful its bid to tackle precocious ostentation rates.
The Fed raised benchmark involvement rates by three-quarters of a percent constituent past month, the 3rd consecutive summation of that size. Fed officials besides indicated they would proceed hiking rates good supra the existent scope of 3% to 3.25%.
Dimon said that portion the Fed "waited excessively agelong and did excessively little" arsenic ostentation jumped to four-decade highs, the cardinal slope is "clearly catching up."
"From present we let's each privation him occurrence and support our fingers crossed that they managed to dilatory down the system capable truthful that immoderate it is, is mild — and it is possible," helium added.
'To conjecture is hard, beryllium prepared'
Dimon said helium couldn't beryllium definite however agelong a recession successful the U.S. mightiness last, adding that marketplace participants should measure a scope of outcomes instead.
"It tin spell from precise mild to rather hard and a batch volition beryllium reliant connected what happens with this war. So, I deliberation to conjecture is hard, beryllium prepared."
Dimon said the 1 warrant helium could beryllium definite of was volatile markets. He besides warned that this could coincide with disorderly fiscal conditions.
Asked for his views connected the outlook for the S&P 500, Dimon said the benchmark could yet autumn by "another casual 20%" from existent levels, adding that "the adjacent 20% would beryllium overmuch much achy than the first."
Speaking to a roomful of analysts and investors successful aboriginal June, Dimon said helium was preparing the slope for an economical "hurricane" caused by the Federal Reserve and Russia's warfare successful Ukraine.
"JPMorgan is bracing ourselves and we're going to beryllium precise blimpish with our equilibrium sheet," Dimon said astatine the time. He advised investors to bash the same.
Market participants are monitoring a highly anticipated ostentation people connected Thursday arsenic good arsenic a slew of firm earnings.
JPMorgan is scheduled to merchandise third-quarter fiscal results connected Friday.
Shares of the slope are down astir 33% year-to-date.
