JPMorgan Chase & Co (NYSE: NYSE:JPM) CEO Jamie Dimon sounded a warning over the United States and global economies on Monday saying they were facing “very, very serious” headwinds and likely to slip into a recession in 2023.
What Happened: “You can’t talk about the economy without talking about stuff in the future — and this is serious stuff,” said Dimon at the JPM Techstars conference in London, reported CNBC.
Dimon brought up inflation, a future trend of rising interest rates and the Russia-Ukraine conflict as some of the indicators signaling an alarm.
“These are very, very serious things which I think are likely to push the U.S. and the world,” said Dimon, according to CNBC.
“I mean, Europe is already in recession — and they’re likely to put the U.S. in some kind of recession six to nine months from now.”
Why It Matters: Dimon said he was unsure how long a U.S. recession might last and said “a lot will be reliant on what happens with this war,” reported CNBC.
Giving his outlook for the S&P 500, he said the benchmark index could tumble “another easy 20%” from present levels. Dimon said, “The next 20% would be much more painful than the first.”
Dimon said he was preparing JPMorgan for an economic “hurricane” and that the bank was going to be very “conservative with our balance sheet,” according to CNBC.
JPMorgan is set to report its third-quarter earnings on Oct. 14. In the second quarter, the bank reported earnings per share of $2.76 against Street estimates of $2.91, according to Benzinga data.
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Photo courtesy: Steve Jurvetson on Flickr
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