Jamie Dimon, CEO of JPMorgan, issues a warning that “Something Worse” Than a Recession Could Be Coming

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Photo Credit: MICHEL EULER/POOL/AFP via Getty Images

Jamie Dimon, CEO of JPMorgan, has provided his economic forecasts for the United States, which include the possibility of “something worse” than a recession. The executive declared that there were storm clouds, citing China, Ukraine, war, QT, oil, and interest rates.

Jamie Dimon, the chairman, and CEO of JPMorgan, reportedly discussed his forecasts for the direction of the American economy with clients last week, according to a report on Yahoo Finance on Saturday.

The executive emphasized that “you have to think differently” when forecasting, even though the U.S. economy is strong and consumers’ balance sheets and businesses are in good shape. What’s out there, asked the JPMorgan CEO. There are clouds in the sky. rates, qt, oil, the war in the Ukraine, and china

Dimon shared: “If I had to put odds: soft landing 10%. Harder landing, mild recession, 20%, 30%.” He added:

Harder recession, 20%, 30%. And maybe something worse at 20% to 30%.

“It is a bad mistake to say ‘here is my single point forecast,’” he clarified.

He had previously warned that an economic hurricane is “coming our way” in June, and his predictions confirmed that. He cautioned the investors to take a seat.

Despite the possibility of something worse than a recession, Dimon emphasized: “Whatever the future brings, JPMorgan is prepared,” during a recent visit to the Olneyville branch of JPMorgan Chase.

It has been predicted by a number of analysts that the US economy may enter a recession this year. Michael Gapen, the head of U.S. economics at Bank of America, said on Monday on Fox Business that there is a good chance that this year will see a mild recession. He believes that the Federal Reserve’s fight against inflation will unintentionally start a downturn. “This cycle will likely end in a slight downturn… How did I arrive at that? It’s really hard to achieve a soft landing,” the analyst opined.

Goldman Sachs’ economist David Mericle detailed in a client note Sunday: “Our broad conclusion is that there is a feasible but difficult path to a soft landing, though several factors beyond the Fed’s control can ease or complicate that path and raise or lower the odds of success.”