JPMorgan Chase Chief Executive Jamie Dimon said "serious" headwinds are likely to push the U.S. and global economies into recession by the middle of next year.
"These are very, very serious things which I think 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 in an
While the U.S. economy is doing well at the moment, a number of indicators and global issues — the impact of surging inflation, interest rates going up more than had been expected, the effects of the Federal Reserve ending quantitative easing and Russia's war in Ukraine among them — are ringing alarm bells, Dimon said.
"The likely place you're going to see more of a crack and maybe a little bit more of a panic is in credit markets, and it might be ETFs, it might be a country, it might be something you don't suspect," Dimon told CNBC. "If you make a list of all the prior crises, sitting here we would not have predicted where they came from, though I think you could predict this time that it probably will happen. So if I was out there I'd be very cautious. If you need money, go raise it."
Dimon said the S&P 500 "may have a ways to go" in its decline, and that "it could be another easy 20%." The index is down almost 25% this year. "The next 20% will be much more painful than the first," he told CNBC. "Rates going up another 100 basis points are a lot more painful than the first 100 because people aren't used to it."
