Jamie Dimon's Warning: Brace Yourself for an Impending Recession

At the 2023 New York Times DealBook Summit, JPMorgan Chase CEO Jamie Dimon delivered a sobering message to Wall Street: Be ready for the possibility of further inflation and a potential recession. "There are a lot of risky and inflationary factors out there. Stay vigilant," he cautioned. "The potential for interest rates to increase could potentially trigger a recession."

He emphasized the need for governments worldwide to allocate more funds for the green economy, remilitarization, and addressing energy crises, cautioning that this could lead to inflation. Expressing caution about the economy, he noted that while the labor market in the United States has shown resilience, inflation is negatively impacting people.

During the Covid shutdowns, the distribution of stimulus money and quantitative easing by the Federal Reserve were likened by Dimon to injecting drugs directly into the economy, causing a temporary economic "sugar high." However, he noted that this effect is now fading. Dimon also expressed concern that quantitative easing, tightening, and geopolitical issues could have negative impacts. In previous interviews, Dimon has suggested that the Fed's aggressive interest rate hikes to combat inflation may not be over, and that there is a possibility of further rate hikes totaling 1.5 percentage points, up to 7%.

This story is developing and will be updated.