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The CEO of global investment bank JPMorgan, Jamie Dimon, has warned that the U.S. economy could tip into recession in six to nine months. \u201cThis is serious stuff,\u201d the executive stressed, adding that the stock market could easily fall another 20%. \n Dimon cited a number of indicators that could push the U.S. economy into recession, including runaway inflation, interest rates rising more than expected, the effects of quantitative easing, and the Russia-Ukraine war. Stating that \u201cEurope is already in recession,\u201d the JPMorgan boss said:\n<\/p>\n These are very, very serious things which I think are likely to push the U.S. and the world \u2026 in some kind of recession six to nine months from now.<\/p>\n<\/blockquote>\n \n Nonetheless, he believes that the U.S. economy is \u201cactually still doing well,\u201d adding that consumers are likely to be in better shape than during the 2008 global financial crisis. However, he cautioned:\n<\/p>\n But you can\u2019t talk about the economy without talking about stuff in the future \u2014 and this is serious stuff.<\/p>\n<\/blockquote>\n \n Dimon was also asked about the outlook for the S&P 500. He stressed that the markets will be volatile and the benchmark could fall further from current levels. \u201cIt may have a ways to go. It really depends on that soft-landing, hard-landing thing and since I don\u2019t know the answer to that, it\u2019s hard to answer \u2026 it could be another easy 20%,\u201d the JPMorgan executive replied, elaborating:\n<\/p>\n The next 20% would be much more painful than the first.<\/p>\n<\/blockquote>\n \n In June, Dimon warned<\/a> that an economic hurricane was coming, advising people to brace themselves. In August, the JPMorgan boss doubled down<\/a> on his warning, cautioning that \u201csomething worse\u201d than a recession could be coming.<\/p>\n
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<\/strong>\n<\/p>\nJPMorgan CEO Jamie Dimon\u2019s Warnings<\/h2>\n
\nJPMorgan CEO Jamie Dimon shared his warnings about the U.S. economy and the stock market in an interview with CNBC Monday at the JPM Techstars conference in London.<\/p>\n\n
\nThe executive noted that the Federal Reserve is \u201cclearly catching up\u201d as inflation reached a 40-year high<\/a>, emphasizing that the central bank \u201cwaited too long and did too little.\u201d Dimon opined: \u201cAnd, you know, from here, let\u2019s all wish him [Fed\u2019s chairman] success and keep our fingers crossed that they managed to slow down the economy enough so that whatever it is, is mild \u2014 and it is possible.\u201d<\/p>\n\n
\nResponding to a question about how long the U.S. economy will likely be in recession, he admitted that he could not be certain, advising market participants to assess a range of outcomes. \u201cIt can go from very mild to quite hard and a lot will be reliant on what happens with this war. So, I think to guess is hard, be prepared,\u201d the JPMorgan chief stated.<\/p>\n\n
\n\u201cRates going up another 100 basis points will be a lot more painful than the first 100 because people aren\u2019t used to it, and I think negative rates \u2014 when all is said and done \u2014 will have been a complete failure,\u201d he concluded. At the time of writing, the S&P 500 has already dropped 25% year-to-date.<\/p>\n