US

JPMorgan CEO Jamie Dimon says inflation could tip the US economy into a recession next year

Longtime JPMorgan CEO Jamie Dimon continued to sound the alarm about the immediate outlook for the US economy, warning that inflation could soon wipe out consumer wealth and plunge the country into recession.

Speaking on CNBC’s Squawk Box Tuesday, Dimon said continued elevated inflation levels are “erode” the $1.5 trillion in savings Americans amassed during the COVID pandemic.

“That $1.5 trillion will run out sometime in the middle of next year,” he said. “If you look ahead, those things could very well derail the economy and cause a mild or hard recession that people are concerned about.”

In June, 66-year-old Dimon told the public that he was preparing his bank – the largest on Wall Street – for an economic “hurricane” on the horizon. In part, that assessment was due to the ongoing war in Ukraine and a number of moves from the Federal Reserve.

Jamie Dimon, Ceo Of Jpmorgan Chase, Told Cnbc That Consumers And Businesses Are In Good Shape Right Now, But Won'T Be For Long As The Economy Slows

Jamie Dimon, CEO of JPMorgan Chase, told CNBC that consumers and businesses are in good shape right now, but won’t be for long as the economy slows

Dimon Said U.s. Consumers Remain In A Fairly Solid Position Despite Continued Record Inflation Hitting U.s. Households

Dimon Said U.s. Consumers Remain In A Fairly Solid Position Despite Continued Record Inflation Hitting U.s. Households

Dimon said U.S. consumers remain in a fairly solid position despite continued record inflation hitting U.S. households

Earlier This Year, Dimon Caused A Stir When He Said Economic Storm Clouds Were Gathering And Could Potentially Lead To A Financial Hurricane Event For The Us Economy.

Earlier This Year, Dimon Caused A Stir When He Said Economic Storm Clouds Were Gathering And Could Potentially Lead To A Financial Hurricane Event For The Us Economy.

Earlier this year, Dimon caused a stir when he said economic storm clouds were gathering and could potentially lead to a financial hurricane event for the US economy.

On Tuesday, he offered a number of insights, including an emphasis on his earlier statement about the potential financial “hurricane” that could emerge. While on the hot seat, he said he is preparing “as a risk manager” for the worst-case scenario, but that doesn’t necessarily mean the storm clouds will develop into a full-blown storm and declined to guess what the coming economic landscape will look like Like it.

He added that the Federal Reserve could pause for three to six months after raising interest rates to 5 percent, but that may not be enough to curb high inflation.

The Federal Reserve raised interest rates by 75 basis points to 3.75 to 4 percent for its fourth consecutive meeting last month, but also said it hopes to raise borrowing costs as soon as possible at its next meeting.

Meanwhile, Bank of America CEO Brian Moynihan told investors at a Goldman Sachs financial conference that Bank of America’s research shows “negative growth” in the early part of 2023, but contraction will be “mild.”

“Economic growth is slowing,” said David Solomon, CEO of Goldman Sachs. “When I talk to our customers, they sound extremely cautious.”

In banking, the job market remains “surprisingly tight” and competition for talent is “tougher than ever,” he said.

A growing number of companies have responded to the slowing economy by cutting jobs in an effort to contain costs.

Dimon Has Led Jpmorgan Since 2006, Grew Into Wall Street'S Largest Bank And Weathered Both The 2008 Housing Crisis And The 2020 Covid Crisis

Dimon Has Led Jpmorgan Since 2006, Grew Into Wall Street'S Largest Bank And Weathered Both The 2008 Housing Crisis And The 2020 Covid Crisis

Dimon has led JPMorgan since 2006, grew into Wall Street’s largest bank and weathered both the 2008 housing crisis and the 2020 COVID crisis

Dimon Said On Tuesday That The Us Economy Remains Solid And The Banking Sector In Particular Remains In Strong Shape Even As Most Major Financial Institutions Are Laid Off

Dimon Said On Tuesday That The Us Economy Remains Solid And The Banking Sector In Particular Remains In Strong Shape Even As Most Major Financial Institutions Are Laid Off

Dimon said on Tuesday that the US economy remains solid and the banking sector in particular remains in strong shape even as most major financial institutions are laid off

During his extensive interview on Tuesday, Dimon also spoke about the hot-topic cryptocurrency, which he called a “complete sideshow” poisoned by crime.

He also noted that the global economy is in the midst of some sort of reordering as geopolitical tensions shift and escalate due to factors such as the war in Ukraine and supply chain disruptions from COVID, leading some countries to consider restructuring.

While the U.S. economy is currently going through a rough patch, especially when compared to the pre-COVID environment, Dimon maintained the view that businesses and consumers generally remain in good shape and that the U.S. economy remains the strongest in the world.

In addition, the banking sector, he said, remains “incredibly healthy in a million different ways.”

“Our capital cup is overflowing,” he said, trying to allay fears that businesses on the street would not inevitably recover from any temporary setbacks they are currently facing.

Jobs have been cut at many major Wall Street institutions, including those recently announced at Morgan Stanley, as well as Goldman Sachs, Citigroup and Barclays.

Show More

Jacky

The author of what'snew2day.com is dedicated to keeping you up-to-date on the latest news and information.

Related Articles

Back to top button