Jamie Dimon, CEO of JPMorgan, shared his predictions about the U.S. economy. He also predicted that there would be “something worse” than a slump. The executive stated that “there are storm clouds”, citing QT, interest rates, oil, war, and China.
Jamie Dimon (JPMorgan’s chairman, chief executive officer), reportedly gave his predictions on where the U.S. economic future is heading during a call with clients last week, Yahoo Finance reported Saturday.
The executive acknowledged that the U.S. economic is strong with healthy balance sheets for consumers and businesses, but stressed that forecasting requires a different mindset. According to JPMorgan’s chief, “What is out there?” There are storm clouds. Rates, QT, oil, Ukraine, war, China.”
Dimon said: “If I had the chance to place odds: Soft landing 10%. He said: “Harder landing, mild recession 20%, 30%.”
Harder recession, 20%, 30%. Perhaps there is something worse, 20%-30%.
He clarified, “It’s a mistake to say here’s my single point forecast’.”
His predictions were similar to what he predicted in June, when he warned of an economic storm. He advised investors that they should be prepared.
Dimon believes there is a chance of something worse than a slump, but he also stressed that JPMorgan Chase’s Olneyville branch was prepared for whatever the future might bring.
Numerous analysts predict that the U.S. could experience a recession in this year’s economic cycle. Michael Gapen, the head of U.S. Economics at Bank of America, said Monday to Fox Business that there is a good chance of a mild recession. He believes that the Federal Reserve will inadvertently cause a downturn through its war against inflation. “This cycle is likely to end in a mild downturn… How can I get there? It’s all history. It’s very difficult to achieve a soft landing,” said the analyst.
David Mericle, Goldman Sachs’ economist, stated in a Sunday client note: “Our general conclusion is that there’s a possible but difficult path towards a soft landing. However, many factors outside the Fed’s reach can make it easier or more complicated and increase or decrease the chances of success.