JPMorgan CEO Jamie Dimon warns US recession ‘likely’ in 6 to 9 months
JPMorgan Chase chief executive Jamie Dimon predicted the American economy will probably tip into a recession next year, warning the downturn threatened to spark “panic” in credit markets and wipe an additional 20 per cent from the value of US stocks.
The comments from Dimon, whose economic pronouncements are closely followed by investors, followed similar remarks last month by billionaire investor Ken Griffin and point to a growing consensus among senior figures on Wall Street over the likelihood of a US recession.
In an interview with CNBC on Monday, Dimon listed rising interest rates and Russia’s invasion of Ukraine as factors stoking the risk of a downturn in 2023.
Asked where he saw the trough for the benchmark S&P 500 share index, which is down more than 20 per cent this year, Dimon said it may still “have a ways to go” and “could be another easy 20 per cent”.
“I think the next 20 per cent will be much more painful than the first. Rates going up another 100 basis points are a lot more painful than the first 100 because people aren’t used to it.”
This story originally appeared on: Financial Times - Author:Joshua Franklin
