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JPMorgan’s Jamie Dimon Warns The US Economy Is Headed For Recession Within a Few Months

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JPMorgan's Jamie Dimon Warns The US Economy Is Headed For Recession Within a Few Months
(CTN News) – According to JPMorgan CEO Jamie Dimon, US Economy volatile markets and disorderly financial conditions will lead to a recession in the next six to nine months in the United States.
At the JPM Techstars conference in London, Dimon told CNBC’s Julianna Tatebaum that U.S. consumers would be in better shape this time around than in 2008, but that factors contributing to a recession were still significant.

“You can’t talk about the economy without talking about the future – and this is serious stuff,” Dimon said, citing inflation, quantitative easing, and Russia’s war with Ukraine.

He said these issues are likely to push the U.S. and the world into a recession – 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.

Last Friday’s jobs report showed that businesses continued to hire at a brisk pace, unemployment fell back to a half-century low, and average salaries rose.

Despite this, the jobs report raised concerns that the Federal Reserve is not making much progress in combating inflation.

In light of the Fed’s increased likelihood of raising borrowing costs at a rapid pace, the risk of recession will also increase.

Last month, employers reduced hiring and average wage increases slowed. According to economists, neither is falling fast enough for the Federal Reserve to slow its efforts to control inflation.

A third rate hike of three-quarters of a point is likely at the Fed’s next meeting in November, which will be the fourth in a row.

In order to tame inflation and cool down the economy, the Fed has been hiking interest rates. In turn, the rise in borrowing costs has resulted in higher borrowing costs across the economy, notably for home mortgages, credit cards, and business loans.

According to Dimon, the Fed, with hindsight, did not do enough and waited too long to act.

He said, “But they’re clearly catching up. They’re clearly motivated.” Let’s wish him success from here and cross our fingers that whatever happens, it’s mild – and possible.”

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