The economic system headed for one thing worse than a recession…
JPMorgan CEO Jamie Dimon says the United States is heading into ‘one thing worse’ than a recession, record says
Dimon’s earlier feedback in June when he warned of an “financial storm.”
JPMorgan CEO Jamie Dimon estimated remaining week the likelihood that the United States would head right into a recession, in keeping with a Yahoo Finance record revealed Saturday.
Total, Dimon stated on a shopper name Tuesday, the economic system is “robust” however he famous there are “typhoon clouds” at the horizon, together with federal financial insurance policies, Russia’s invasion of Ukraine, and emerging oil costs. The categorization is an obvious downgrade from Dimon’s earlier feedback in June when he warned of an “financial storm.”
“Shoppers’ steadiness sheets are in just right form. Companies are similarly in just right form. While you forecast, it’s a must to suppose otherwise,” he stated, consistent with the Yahoo record. “This can be a unhealthy mistake to mention ‘here’s my unmarried level forecast.'”
The CEO broke down the percentages of a “cushy touchdown” to be round 10% and the likelihood of a “more difficult touchdown” or “delicate recession” to be nearer to 20-30%. There is additionally a 20-30% probability of a “more difficult recession” and a 20-30% probability of “one thing worse,” in keeping with Dimon.
Previous this summer season, Dimon walked again the “typhoon cloud” metaphor he first used to explain the United States economic system in April.
“You recognize, I stated there may be typhoon clouds however I’ll exchange it … it is a storm,” he stated on the Bernstein convention on June 1. “You higher brace your self. JPMorgan is bracing ourselves and we are going to be very conservative with our steadiness sheet.”