Jamie Dimon warns that the US is likely to slide into recession soon

Dimon said in June that he was preparing the bank for an economic “hurricane” caused by the Federal Reserve and Russia’s war in Ukraine.

Al Drago | Bloomberg | Getty Images

JPMorgan Chase Manager Jamie Dimon warned Monday that a “very, very severe” mix of headwinds is likely to tip both the U.S. and global economy into recession by the middle of next year.

Dimon, the CEO of the largest bank in the United States, said the U.S. economy is “actually still doing well” at the moment and consumers are likely to be in better shape compared to the 2008 global financial crisis.

“But you can’t talk about the economy without talking about things in the future — and these are serious things,” Dimon told CNBC’s Julianna Tatelbaum on Monday.

Among the indicators ringing alarm bells, Dimon cited the impact of runaway inflation, interest rates rising more than expected, the unknown effects of quantitative easing and Russia’s war in Ukraine.

“These are very, very serious things that I think are likely to pressure the United States and the world — I mean, Europe is already in recession — and they’re likely to put the United States in some kind of recession six to nine months from now,” Dimon said.

His comments come at a time of growing concern about the prospect of an economic recession as the Federal Reserve and other major central banks raise interest rates to combat rising inflation.

Last month, Chicago Federal Reserve President Charles Evans spoke to CNBC said he feels concerned that the US Federal Reserve is going too far, too fast in its attempt to tackle high inflation rates.

JPMorgan's Jamie Dimon warns that the US is likely to tip into recession in 6 to 9 months

The Fed raised benchmark interest rates by three-quarters of a percentage point last month, the third straight increase of that size. Fed officials also indicated that they would continue to raise interest rates well above the current range of 3% to 3.25%.

Dimon said that while the Fed “waited too long and did too little” when inflation jumped to four-decade highs, the central bank is “clearly catching up.”

“From here, let’s all wish him luck and cross our fingers that they managed to slow down the economy enough so that whatever it is is mild – and it’s possible,” he added.

‘Guessing is hard, be prepared’

Dimon: S&P can still fall

Dimon spoke to a lot of analysts and investors in early June said he prepared the bank for an economic “hurricane” caused by the Federal Reserve and Russia’s war in Ukraine.

“JPMorgan is arming us and we will be very conservative with our balance sheet,” Dimon said at the time. He advised investors to do the same.

Market participants are monitoring a much-anticipated inflation print on Thursday as well as a number of corporate earnings.

JPMorgan is scheduled to announce third-quarter financial results on Friday.

The bank’s shares are down about 33% year-to-date.

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