Jamie Dimon warns ‘something worse’ than a recession could be comingSophie Mellor - 5h agoJP Morgan chief executive Jamie Dimon sees only a 10% chance of an economic slowdown that doesn’t lead to a recession, while ominously warning there are 20-30% odds of "something worse".
The banking boss said on a client call that while the U.S. economy is still strong and consumer balance sheets and businesses are in “good shape,” there are storm clouds ahead, Yahoo! Finance reported.
Hiked fed rates, quantitative tightening, oil shocks, the war in Ukraine, and rising U.S. tensions with China has pushed Dimon to think that a mild recession has a 20% to 30% chance, while a harder recession has the same odds.
But the remaining outcome?
"Maybe something worse," he said.
Dimon stresses it is a mistake to point to any single-point forecast as to what will happen with the U.S. economy, but he has a lot to be pessimistic about.
Confidence is low, Dimon argues, “because of inflation, because of partisan politics, and a lot of leftover anger from COVID-19."
He predicts inflation will not decrease the way the Fed wants it to, calling the goal to bring it down from the 8% to 4% by the end of the year "highly unlikely."
Dimon adds: “I wish we had the spirit that we were all here to work together but it seems we just got nastier somehow.
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https://www.msn.com/en-us/money/markets/jamie-dimon-warns-something-worse-than-a-recession-could-be-coming/ar-AA10ILDZ?ocid=msedgntp&cvid=c5a9809bcffb4420a784906bcdb9fbae
