JPMorgan CEO Jamie Dimon has made headlines for warning a recession could also be looming.
ZUMAPRESS.com
JPMorgan Chase Chief Government Officer Jamie Dimon on Thursday warned that persistent and elevated inflation might spur rates of interest to rise increased than 4.5%, as he cautioned about the potential for a looming recession.
Customers are in robust monetary well being, and are nonetheless spending robustly, he informed attendees on the Institute of Worldwide Finance assembly in Washington.
“They will most likely do this for one more 9 months earlier than inflation and spending catches up with them, which is why I believe you’re going to see a robust financial system for some time.”
Thereafter, coverage makers might have to extend rates of interest to greater than 4.5% to tame inflation, he mentioned.
Dimon pointed to extra turbulence forward with quantitative tightening and fragile power provide making the longer term extra unsure.
“It’s unhealthy… these issues are enormous turbulence that are proper in entrance of us – that may simply trigger recession.”
Dimon earlier this week informed CNBC the S&P 500 might fall by “one other straightforward 20%” from the present ranges, with the subsequent 20% slide prone to “be a lot extra painful than the primary.”
Dimon, referring to latest feedback in regards to the inventory market, mentioned on Thursday that he didn’t know if there can be a delicate touchdown, including: “I don’t suppose so but it surely may.”
Nevertheless, within the situation of a “robust recession you’d anticipate the market down one other 20-30%.”
Within the interview, Dimon additionally repeated his criticism of cryptocurrencies and mentioned they could possibly be used for fraud or decentralized ponzi schemes, and that crypto tokens lack worth.
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