Home Crypto News JPMorgan CEO Jamie Dimon Warns Recession May Hit in 6 Months, Inventory Market May Drop 20% Extra — ‘This Is Severe Stuff’ – Economics Bitcoin Information

JPMorgan CEO Jamie Dimon Warns Recession May Hit in 6 Months, Inventory Market May Drop 20% Extra — ‘This Is Severe Stuff’ – Economics Bitcoin Information

by Cryptoroz

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The CEO of world funding financial institution JPMorgan, Jamie Dimon, has warned that the U.S. financial system may tip into recession in six to 9 months. “That is critical stuff,” the manager careworn, including that the inventory market may simply fall one other 20%.

JPMorgan CEO Jamie Dimon’s Warnings

JPMorgan CEO Jamie Dimon shared his warnings in regards to the U.S. financial system and the inventory market in an interview with CNBC Monday on the JPM Techstars convention in London.

Dimon cited plenty of indicators that might push the U.S. financial system into recession, together with runaway inflation, rates of interest rising greater than anticipated, the results of quantitative easing, and the Russia-Ukraine conflict. Stating that “Europe is already in recession,” the JPMorgan boss mentioned:

These are very, very critical issues which I believe are more likely to push the U.S. and the world … in some sort of recession six to 9 months from now.

The chief famous that the Federal Reserve is “clearly catching up” as inflation reached a 40-year excessive, emphasizing that the central financial institution “waited too lengthy and did too little.” Dimon opined: “And, you already know, from right here, let’s all want him [Fed’s chairman] success and preserve our fingers crossed that they managed to decelerate the financial system sufficient in order that no matter it’s, is gentle — and it’s attainable.”

Nonetheless, he believes that the U.S. financial system is “truly nonetheless doing properly,” including that customers are more likely to be in higher form than in the course of the 2008 world monetary disaster. Nonetheless, he cautioned:

However you’ll be able to’t discuss in regards to the financial system with out speaking about stuff sooner or later — and that is critical stuff.

Responding to a query about how lengthy the U.S. financial system will doubtless be in recession, he admitted that he couldn’t make sure, advising market individuals to evaluate a variety of outcomes. “It might go from very gentle to fairly onerous and quite a bit will likely be reliant on what occurs with this conflict. So, I believe to guess is difficult, be ready,” the JPMorgan chief acknowledged.

Dimon was additionally requested in regards to the outlook for the S&P 500. He careworn that the markets will likely be risky and the benchmark may fall farther from present ranges. “It might have a methods to go. It actually will depend on that soft-landing, hard-landing factor and since I don’t know the reply to that, it’s onerous to reply … it may very well be one other simple 20%,” the JPMorgan govt replied, elaborating:

The subsequent 20% can be way more painful than the primary.

“Charges going up one other 100 foundation factors will likely be much more painful than the primary 100 as a result of folks aren’t used to it, and I believe damaging charges — when all is alleged and finished — could have been an entire failure,” he concluded. On the time of writing, the S&P 500 has already dropped 25% year-to-date.

In June, Dimon warned that an financial hurricane was coming, advising folks to brace themselves. In August, the JPMorgan boss doubled down on his warning, cautioning that “one thing worse” than a recession may very well be coming.

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Kevin Helms

A pupil of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source programs, community results and the intersection between economics and cryptography.




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