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 CEO declared that there were storm clouds, citing China, Ukraine, conflict, QT, oil, and interest rates.
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Economic Predictions from Jamie Dimon, CEO of JPMorgan
The chairman and CEO of JPMorgan, reportedly discussed his forecasts for the direction of the American economy with clients last week, according to a post on Yahoo Finance on Saturday.
The executive highlighted that “you have to think differently” when forecasting, even though the U.S. economy is strong and consumers’ financial sheets and businesses are in good health. What’s out there, asked the JPMorgan CEO? There are clouds in the sky. rates, qt, oil, 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 said.
He had previously warned that an economic hurricane is “coming our way” in June, and his projections confirmed that. He cautioned the investors to take a seat.
Despite the likelihood 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 projected 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 probability that this year would see a mild recession.
He believes that the Federal Reserve’s fight against inflation would unintentionally start a slump. “This cycle will likely culminate in a slight decline… How did I get at that? Essentially, it’s just history. A soft landing is quite difficult to achieve, the analyst said.
“Our basic conclusion is that there is a viable but difficult path to a gentle landing, but various events beyond the Fed’s control can ease or complicate that path and raise or lower the odds of success,” Goldman Sachs economist David Mericle said in a client note on Sunday.