The assessment that something worse than a recession is coming for the US economy was expressed by the CEO of JPMorgan, Jamie Dimon. “There are storm clouds,” he said, meaning Fed rates, QT, oil, Ukraine, war and China.
The economic forecasts of JPMorgan chief Jamie Dimon
JPMorgan Chairman and CEO Jamie Dimon shared his predictions on where the US economy is headed.
While he noted that the U.S. economy is strong, with consumer balance sheets and businesses in good shape, he also stressed that “you have to think differently” when making predictions:
“What’s out there? There are storm clouds. Prices, QT, oil, Ukraine, war, China. If I had to put odds: soft landing 10%. Hard landing, soft landing, mild recession, 20%, 30%. Harder recession, 20%, 30%. And maybe something worse at 20% to 30%. It’s wrong to say: here’s my forecast for just one point,” he clarified.
Recall that last June he warned that an economic hurricane was coming our way and advised investors to prepare.
While Dimon sees a possibility of something worse than a recession, he stressed during a recent visit to the Olneyville banking branch of JPMorgan Chase, “Whatever the future brings, JPMorgan is ready.”
READ ALSO: Jamie Dimon: JPM Coin Could ‘One Day’ See Consumer Use
The other views
Various analysts have predicted that the US economy could be in recession in 2022.
Bank of America’s US chief financial officer, Michael Gapen, told Fox Business Monday that there is a strong possibility of a mild recession this year. He expects the Federal Reserve to cause an unintended recession with its war on inflation:
“This cycle probably ends in a mild recession… How can I come to that conclusion? By looking at history. It’s really hard to get a soft landing,” the analyst said.
Goldman Sachs economist David Merrick clarified in a note last Sunday:
“Our overall conclusion is that there is a feasible but difficult path to a soft landing, although several factors beyond the Fed’s control can facilitate or complicate that path and increase or decrease the chances of success.”
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