The US economy is receiving a grave warning from a Wall Street bank.
Jamie Dimon, the CEO of Wall Street’s largest bank, JPMorgan Chase, has warned investors that a US economic slump is likely and that “something worse” than a severe recession may be approaching.
In a statement on Saturday, Dimon said the economy is “robust” and that consumer and company balance sheets “are in terrific health.” However, the banker emphasized that there are “storm clouds” in the distance, such as rising oil costs and increased interest rates.
“When you forecast, you have to think differently. What is out there? There are storm clouds. Rates, quantitative tightening (QT), oil, Ukraine, war, China,” Dimon said. “If I had to put odds: soft landing 10%. Harder landing, mild recession, 20%, 30%. Harder recession, 20%, 30%. And maybe something worse at 20% to 30%. It is a bad mistake to say ‘here is my single point forecast,’” he clarified.
Last month, Dimon expressed concern that the conflict in Ukraine, along with rising geopolitical tension, soaring inflation, declining consumer confidence, and uncertainty over how much the Federal Reserve will raise its policy rate, would likely have a negative effect on the world economy in the future.
The largest US bank’s president earlier in June warned people to prepare for an economic “storm.”
The source utilised in the creation of the news: https://www.rt.com
