- President Jamie Dimon spoke to JP Morgan’s wealthy clients
- He said the odds of a major recession and “something worse” were between 20 and 30 percent.
- He described the current risk as thunderclouds, a marked downgrade from his June warning about a hurricane
- More such information can be found on the main page of Onet.pl
According to Yahoo Finance, Jamie Dimon, president of JP Morgan Chase, estimated the likelihood of a recession in the US last week.
Dimon said in a conversation with customers that the economy is strong, but storm clouds are looming on the horizon, including the Fed’s monetary policy, Russia’s invasion of Ukraine, and rising oil prices. This statement is apparently a downgrade from Dimon’s previous comments when he warned of an economic hurricane.
See also: Inflation, crisis and stagflation on the horizon. Experts identified the greatest economic threats
“Consumer balance sheets are in good shape,” he said, according to information provided by Yahoo. – Enterprises are also in good shape. When you make a forecast, however, you have to think differently. “This is my one-point prediction” is a mistake, he added.
The president estimated that the chance of a soft landing is around 10% and the probability of a hard landing or a mild recession is closer to 20-30%. He likewise estimated the chances of a hard recession and “something even worse”.
Dimon first used the storm cloud metaphor to describe the US economy as early as April, but in June his forecast became more serious.
See also: President of PFR: the key challenge for Europe is to survive the winter. Time will work against Russia
– I’m gonna turn the storm clouds around. I am an optimist, I said that there are storm clouds and large storm clouds. This is a hurricane, he said at a Bernstein conference on June 1. – You better get ready. JP Morgan is getting ready and we will be very conservative to our balance sheet – he added.
Industry leaders like Dimon have made different economic outlooks over the past few months as the strong US job market has hit two consecutive quarters of decline. This has left many pundits wondering if the United States is approaching a recession or is already stuck in it.
“It’s a bit sunny at the moment,” Dimon said in June. – Everything’s fine. Everyone thinks the Fed can handle it. The hurricane is right there and it’s closing in on us. We just don’t know if it will be a small hurricane or Frankenstorm Sandy or Andrew or something similar – he assessed.
Author: Hannah Towey
Translated by Mateusz Albin