Jamie Dimon: Recession Lies Ahead

'This is serious stuff,' JPMorgan Chase CEO says, as Fed didn't do nearly enough in time
By Evann Gastaldo,  Newser Staff
Posted Oct 11, 2022 12:05 AM CDT
Updated Oct 11, 2022 6:39 AM CDT
Jamie Dimon: US Recession Likely Within 6 to 9 Months
JPMorgan Chase & Company Chairman and CEO Jamie Dimon testifies at a Senate Banking Committee annual Wall Street oversight hearing, Thursday, Sept. 22, 2022, on Capitol Hill in Washington.   (AP Photo/Jacquelyn Martin)

The US economy is "actually still doing well" right now, JPMorgan Chase CEO Jamie Dimon said Monday—but that statement comes with a big "but." Dimon, in an interview with CNBC, continued, "you can’t talk about the economy without talking about stuff in the future—and this is serious stuff." He predicted the country will be in a recession within 6 to 9 months, citing skyrocketing inflation and interest rates and Russia's invasion of Ukraine, among other things, as factors that will likely push the US into a recession by the middle of 2023. Separately Monday, Bank of America warned that rising interest rates will likely cause the US to lose about 175,000 jobs per month for much of next year, CNN reports.

"These are very, very serious things which I think are likely to push the US and the world—I mean, Europe is already in recession," Dimon said in his interview. He criticized the Federal Reserve for not doing enough, early enough, to combat inflation—but said it's obviously catching up now. "And, you know, from here, let’s all ... keep our fingers crossed that they managed to slow down the economy enough so that whatever it is, is mild—and it is possible," he said. As for how long a recession might last, though, he offered no predictions: "It can go from very mild to quite hard and a lot will be reliant on what happens with this war. So, I think to guess is hard, be prepared." Stocks dipped following Dimon's comments, CNN reports. (Read more recession stories.)

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