October 1, 2022

‘Something worse’ than recession arriving – JPMorgan

Wall structure Street bank issues serious warning for the US economy

The boss of Wall Street banking giant JPMorgan Pursue, Jamie Dimon, has cautioned investors of the likelihood of a downturn in the US economy, saying that  “ some thing worse”   than the usual hard recession could be coming.

Based on a Yahoo Finance record on Saturday, Dimon mentioned that the economy is  “ strong”   while businesses’ and customers’ balance sheets  “ are in good shape. ”   The banker, nevertheless , pointed out that there are  “ storm clouds”   on the horizon, including increasing oil prices and higher interest rates.

“ When you forecast, you have to think differently. What is available? There are storm clouds. Prices, quantitative tightening (QT), oil, Ukraine, war, China, ”   Dimon said.   “ Basically had to put odds: gentle landing 10%. Harder landing, mild recession, 20%, 30%. Harder recession, 20%, 30%. And maybe something worse at 20% to 30%. This is a bad mistake to say ‘ here is my single point forecast, ‘”   he clarified.

Last month, Dimon warned that geopolitical tension, soaring inflation, waning consumer confidence, and uncertainty about how much the Government Reserve’s policy rate will be increased, combined with the conflict within Ukraine, would likely have a damaging impact on the global economy sometime in the future.

Previously in June, the head of the biggest US bank said to brace for an economic  “ hurricane. ”

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