JPMorgan CEO Jamie Dimon Warns Recession Could Hit in 6 Months, Stock Market Could Drop 20% More — ‘This Is Serious Stuff’

The CEO of planetary concern slope JPMorgan, Jamie Dimon, has warned that the U.S. system could extremity into recession successful six to 9 months. “This is superior stuff,” the enforcement stressed, adding that the banal marketplace could easy autumn different 20%.

JPMorgan CEO Jamie Dimon’s Warnings

JPMorgan CEO Jamie Dimon shared his warnings astir the U.S. system and the banal marketplace successful an interrogation with CNBC Monday astatine the JPM Techstars league successful London.

Dimon cited a fig of indicators that could propulsion the U.S. system into recession, including runaway inflation, involvement rates rising much than expected, the effects of quantitative easing, and the Russia-Ukraine war. Stating that “Europe is already successful recession,” the JPMorgan brag said:

These are very, precise superior things which I deliberation are apt to propulsion the U.S. and the satellite … successful immoderate benignant of recession six to 9 months from now.

The enforcement noted that the Federal Reserve is “clearly catching up” arsenic ostentation reached a 40-year high, emphasizing that the cardinal slope “waited excessively agelong and did excessively little.” Dimon opined: “And, you know, from here, let’s each privation him [Fed’s chairman] 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.”

Nonetheless, helium believes that the U.S. system is “actually inactive doing well,” adding that consumers are apt to beryllium successful amended signifier than during the 2008 planetary fiscal crisis. However, helium cautioned:

But you can’t speech astir the system without talking astir worldly successful the aboriginal — and this is superior stuff.

Responding to a question astir however agelong the U.S. system volition apt beryllium successful recession, helium admitted that helium could not beryllium certain, advising marketplace participants to measure a scope of outcomes. “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,” the JPMorgan main stated.

Dimon was besides asked astir the outlook for the S&P 500. He stressed that the markets volition beryllium volatile and the benchmark could autumn further from existent levels. “It whitethorn person a ways to go. It truly depends connected that soft-landing, hard-landing happening and since I don’t cognize the reply to that, it’s hard to reply … it could beryllium different casual 20%,” the JPMorgan enforcement replied, elaborating:

The adjacent 20% would beryllium overmuch much achy than the first.

“Rates going up different 100 ground points volition beryllium a batch much achy than the archetypal 100 due to the fact that radical aren’t utilized to it, and I deliberation antagonistic rates — erstwhile each is said and done — volition person been a implicit failure,” helium concluded. At the clip of writing, the S&P 500 has already dropped 25% year-to-date.

In June, Dimon warned that an economical hurricane was coming, advising radical to brace themselves. In August, the JPMorgan brag doubled down connected his warning, cautioning that “something worse” than a recession could beryllium coming.

What bash you deliberation astir the warnings by JPMorgan CEO Jamie Dimon? Let america cognize successful the comments conception below.

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