JPMorgan CEO Jamie Dimon has said there’s likely to be a global recession by the middle of 2023 due to a confluence of “very, very serious” mix of factors, according to CNBC Monday (Oct, 10).
Dimon has said the economy is doing well at the current time, and that consumers will likely be doing better for the present times. But he said there was always the necessity to talk about “stuff in the future,” and he said this was “serious stuff.”
He said some of the more alarming factors were the extremely high inflation, more interest rate hikes than expected, the unknown factor of quantitative tightening, and the Russian ware in Ukraine. He said these factors were of a high level of seriousness, which “are likely to push the U.S. and the world — 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,” Dimon said.
There are currently many concerned about a possible recession, especially as the U.S. Federal Reserve and other big central banks have raised interest rates to fight inflation.
Chicago Fed president Charles Evans recently said he was “apprehensive” in how the U.S. central bank was acting, and he said there was a danger of going “too far, too fast” in the quest to squash inflation rates.
Dimon said the Fed is “clearly catching up” with inflation, and said the country should “all wish him success and keep our fingers crossed that they managed to slow down the economy enough so that whatever it is, is mild — and it is possible.”
Dimon isn’t alone in his assessment, with the various policies to fight inflation showing signs of the possibility of a future recession, according to the United Nations.
Read more: UN Report: Clock Ticking to Dodge Global Recession Worse Than ‘08
PYMNTS wrote recently that there could still be time to pull back from that, as a recession could be worse now than the one in 2008. But the UN has said central banks have to change course.
The data cited in the report shows central banks for advanced economies should work on reducing inflation in other ways aside from raising the interest rates further.
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