JPMorgan Chase CEO warns economic downturn 'likely' in 6 to nine months

Ryan King

Oct 10, 02:15 PM October 10, 02:15 PM

JPMorgan Chase CEO Jamie Dimon is warning that a recession could strike the United States in just the following six to 9 months.

Conceding that the U.S. financial system is “actually however carrying out well” at the moment, Dimon, one of the foremost voices in finance, theorized that a “very, really serious” storm of financial headwinds could shortly converge and tip the overall economy into recession territory in the not-way too-distant upcoming.

JAMIE DIMON WARNS OF Economic 'HURRICANE'

"You can not speak about the economic system without having conversing about stuff in the long run — and this is serious things,” Dimon instructed CNBC’s Julianna Tatelbaum Monday.

"These are pretty, quite severe factors which I think are probable to push the U.S. and the earth — I mean, Europe is currently in recession — and they are probable to place the U.S. in some type of recession six to nine months from now," he extra.

Dimon has sounded the alarm about the economic climate in the past. In June, he rattled investors by warning that an financial "hurricane" was looming. The JPMorgan main has prolonged been outspoken with his sights on community policy and routinely delivers his outlook on the U.S. economy.

In August, the Bureau of Financial Investigation uncovered the U.S. economy contracted at an annualized level for the next quarter in a row, usually a benchmark employed to determine a economic downturn. Nevertheless, the Nationwide Bureau of Financial Analysis declined to declare a economic downturn officially.

Even with the lackluster gross domestic merchandise figures, some facets of the overall economy surface to be buzzing together. The most latest unemployment figures for September arrived in all-around 3.5%, down from the prior month and in the vicinity of file lows. Generally, in a recession, unemployment figures spike up.

Nevertheless, inflation carries on to grip the country. For the 12 months ending in August, inflation came in at a scorching 8.3%, which is notably down from the prior month but exceeded anticipations. That spooked marketplaces, in portion mainly because it signaled that the Federal Reserve would possible keep on jacking up interest prices and tightening monetary plan.

The Fed lately bumped up rates by 3-quarters of a percentage issue last month. Dimon surmised that the Fed “waited far too long and did far too little” on inflation for the duration of the early times and claimed he was not positive if Fed Chairman Jerome Powell could attain a "delicate landing."

“From below, we — let us all want him results and maintain our fingers crossed that they managed to sluggish down the overall economy enough so that what ever it is, is moderate — and it is possible,” Dimon told CNBC.

Some finance gurus, these kinds of as Wharton professor Jeremy Siegel, have fretted that the Fed could be pumping the brakes way too hard. In addition to the prospect of the Fed sucking the wind out of the financial sails, economic difficulties overseas could ripple back household domestically, according to Dimon.

Europe is staring down an strength disaster exacerbated by the war in Ukraine. OPEC+ recently announced plans to slash oil output by 2 million barrels a working day, very likely ushering in larger charges at the pump at residence. On top of that, China's economy has slowed drastically amid its real estate woes and stringent COVID-19 policies.

Dimon previously explained that JPMorgan Chase, the premier nongovernment U.S. lender, options to be "conservative with our balance sheet" as it braces for an economic storm. In his CNBC interview, he acknowledged that he wasn't absolutely sure how critical a economic downturn could be.

“It can go from pretty moderate to really difficult and a ton will be reliant on what happens with this war. So, I think to guess is really hard, be geared up,” he informed the outlet.

The banking titan also hypothesized that the benchmark S&P 500 could plummet downward by “another easy 20%.”

'Road to hell for America': JP Morgan CEO snaps back again at Rep. Tlaib on fossil fuels

Ryan King

September 22, 03:33 PM September 22, 03:33 PM

JPMorgan Chase CEO Jamie Dimon is not committing to divesting from fossil fuels and shrugged off the notion as a "road to hell for America" in the course of a Home listening to.

At an Oversight Committee hearing Wednesday, Rep. Rashida Tlaib (D-MI) pressed a cadre of banking executives sitting in advance of the investigatory panel on whether or not they would commit to quit funding new fossil gas assignments.

JAMIE DIMON WARNS OF Economic 'HURRICANE'

"Absolutely not, and that would be the road to hell for America," Dimon quipped throughout a tense trade with the "Squad" member.

Seemingly expecting that solution, Tlaib encouraged these poised to acquire student personal loan aid with accounts at JPMorgan Chase to close their accounts with his business.

"Sir, you know what? All people that bought aid from pupil financial loans [that] has a financial institution account with your financial institution should possibly choose out their account and close their account," she reported. "The point that you happen to be not even there to decrease numerous of the individuals that are in debt, intense credit card debt, simply because of scholar financial loan debt. And you happen to be out there criticizing it."

Dimon, who is broadly regarded as one of the foremost voices in the world of finance, beforehand slammed environmentalists pushing to suppress oil and gas creation, arguing such steps could direct to amplified coal use in establishing countries.

"We aren't getting this 1 correct," Dimon extra. "Investing in the oil and fuel business is superior for minimizing CO2."

Following the trade, Tlaib peppered the other banking executives in attendance about their positions on fossil fuels. Executives from Citigroup and Lender of The usa defined that they are collaborating with their shoppers to support reduce carbon dioxide emissions.

During the listening to, Dimon also built headlines for disparaging "crypto tokens," normally referred to as cryptocurrency, for becoming a "Ponzi scheme." Dimon has lengthy been a crypto skeptic.

“I'm a main skeptic on crypto tokens, which you get in touch with currency, like Bitcoin. They are decentralized Ponzi strategies,” he declared although boosting protection worries about ransomware payments and other felony activity.

The JPMorgan Chase main has been outspoken about numerous of his sights on general public policy, often venting that Congress is failing to remedy the complications afflicting the state. He surmised that there is a "modest likelihood" the Federal Reserve will reach the gentle landing it wants as it attempts to taper down inflation.

"I believe policymakers must be geared up for the worst, so we get the right actions if and when that happens," he reported, for every Roll Simply call. "I am preserving my fingers crossed."

JPMorgan Chase was rated as just one of the foremost fossil fuel financiers in a analyze by environmental teams very last yr. In terms of the stability sheet, JPMorgan Chase is the most significant nongovernment U.S. financial institution, according to Insider Intelligence.