JPMorgan CEO Dimon warns of recession in 6 to 9 months – CNBC

Oct 10 (Reuters) – JPMorgan Chase & Co (JPM.N) Chief Government Jamie Dimon stated the US and the worldwide economic system might tip right into a recession by the center of the following yr, CNBC reported on Monday.

Runaway inflation, huge rates of interest hikes, the Russian invasion of Ukraine and the unknown results of the Federal Reserve’s quantitative tightening coverage are among the many indicators of a possible recession, he stated in an interview to the enterprise information channel.

“These are very, very critical issues which I feel are prone to push the U.S. and the world — I imply, Europe is already in recession — and so they’re prone to put the U.S. in some type of recession six to 9 months from now,” Dimon stated.

His feedback come as the massive U.S. banks are set to report their third-quarter earnings from Friday. To date this yr, the benchmark S&P 500 index (.SPX) has misplaced about 24%, with all of the three main U.S. indices buying and selling in bear market territory.

Dimon stated the S&P 500 might fall by “one other simple 20%” from the present ranges, with the following 20% slide prone to “be rather more painful than the primary”, in response to the CNBC report.

Earlier this yr, Dimon had requested buyers to brace for an financial “hurricane”, with JPMorgan, the largest U.S. funding financial institution, suspending share buybacks in July after lacking quarterly Wall Avenue expectations. learn extra

In June, Goldman Sachs had predicted a 30% likelihood of the U.S. economic system tipping into recession over the following yr, whereas the economists at Morgan Stanley positioned the percentages of a recession for the following 12 months at round 35%.

World Financial institution President David Malpass and Worldwide Financial Fund Managing Director Kristalina Georgieva additionally warned on Monday of a rising danger of world recession and stated inflation remained an issue after Russia’s invasion of Ukraine. learn extra

(This story has been corrected to repair paragraph 2 to say quantitative tightening, not easing, based mostly on video of the CNBC interview. The error had appeared within the earlier model too.)

Reporting by Niket Nishant in Bengaluru; Modifying by Arun Koyyur

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