Jamie Dimon (JPMorgan’s chairman, chief executive officer), reportedly gave his predictions on where the U.S. economic future is heading during a call with clients last week, Yahoo Finance reported Saturday.
The executive acknowledged that the U.S. economic is strong with healthy balance sheets for consumers and businesses. However, he stressed that forecasting requires a different mindset. According to JPMorgan’s chief, “What is out there?” There are storm clouds. Rates, QT, oil, Ukraine, war, China.’
Dimon said, “If I had to place odds: Soft landing 10%. Harder landing, mild recession, 20%, 30%.’ He said:
Harder recession, 20%, 30%. Perhaps there is something worse, 20%-30%.
He clarified, “It is a mistake to say “here is my one point forecast,” he said.
He repeated his June warning that an economic storm was ‘coming our direction’. He advised investors to be ready.
Dimon believes there is a chance of something worse than a slump, but he also stressed that JPMorgan Chase’s Olneyville branch was prepared for whatever the future might bring.
Numerous analysts predict that the U.S. could experience a recession in this year’s economic cycle. Michael Gapen, Bank of America’s U.S. economist, stated Monday to Fox Business that there is a good chance of a mild recession.
He believes that the Federal Reserve will inadvertently cause a downturn through its war against inflation. “This cycle is likely to end in a mild downturn… How can I get there? It’s all history. The analyst stated that it was difficult to land on a soft landing.
David Mericle, an economist at Goldman Sachs, stated in a Sunday client note that there was a possible but hard path to a soft landing. However, many factors outside the Fed’s reach can make it more difficult or easier and increase or decrease the chances of success.