JPMorgan Chase & Co JPM chairman Jamie Dimon warned Monday about the United States and the global economy, saying they face “very, very serious” headwinds and likely slide into a recession in 2023.
What happened: “You can’t talk about the economy without talking about things in the future – and that’s a serious thing,” Dimon said at the JPM Techstars conference in London. reported CNBC.
Dimon cited inflation, a future trend of rising interest rates, and the Russia-Ukraine conflict as some of the red flags.
“These are very, very serious things that I think are likely to move the US and the world forward,” Dimon said, according to CNBC.
“I mean, Europe is already in recession — and they’re probably going to put the US in some kind of recession in six to nine months.”
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Why it matters: Dimon said he’s not sure how long a US recession will last, saying “a lot will depend on what happens with this war,” CNBC reported.
Providing his outlook for the S&P 500, he said the benchmark could fall “another easy 20%” from current levels. Dimon said, “The next 20% would be a lot more painful than the first.”
Dimon said he was preparing JPMorgan for an economic “hurricane” and that the bank would be very “conservative about our balance sheet,” according to CNBC.
JPMorgan is expected to report its third-quarter earnings on October 14. In the second quarter, the bank reported earnings per share of $2.76 versus Street’s estimate of $2.91 Benzinga data.
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photo Courtesy: Steve Jurvetson on Flickr
