Dimon said hyperinflation, massive interest rate hikes, the Ukraine crisis, and the unknown impact of the Federal Reserve’s quantitative easing policy are among the indicators of a possible recession, CNBC reported.
“These are very serious things and I think they might push the US and the world – I mean, Europe is already in recession – and potentially put the US into a recession six to nine months from now,” Dimon said.
His comments come at a time when major US banks are preparing to announce third-quarter earnings from Friday. The Standard & Poor’s 500 Index has lost 24 percent so far this year, with all three major US indexes declining.
Dimon told investors earlier this year to prepare for an economic “hurricane” as JP Morgan, the largest US investment bank, suspended share buybacks in July.
World Bank President David Malpass and International Monetary Fund Managing Director Kristalina Georgieva warned of the growing risk of a global recession and said inflation remained a problem after the Ukraine crisis.
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