- Then Damon said there was a 20-30% chance that something much worse could happen.
- Goldman Sachs CEO David Solomon previously issued a similar warning.
Jimmy Damon, CEO of JPMorgan Chase & Co. , recently warned customers on a conference call that something much worse than a recession could be on the horizon. Dimon said the probability of a recession causing an economic slowdown is only 10%. Then he said there was a 20-30% chance that something much worse could happen.
Concern was heightened when Dimon warned clients on a conference call that despite the strong state of the US economy, the health of the company and consumers’ balance sheets, storm clouds were looming.
Multiple factors to consider
Due to higher Fed interest rates, quantitative tightening, oil price shocks, the situation in Ukraine, and escalating US relations with China, JP Morgan The CEO now believes that a minor recession has a 20%-30% chance, while a catastrophic recession has the same chances.
He says a worse outcome is possible, and it would be irresponsible to focus on any single prediction about the future of the US economy. Damon confirmed that federation Reserves The goal of reducing inflation from 8% to 4% by the end of the year is completely unrealistic.
Many CEOs already predicted a recession was approaching, but their forecasts were much less severe than Dimon’s. Goldman Sachs CEO David Solomon previously issued a similar warning about a potential economic downturn. Black stone CEO Larry Fink predicted otherwise, urging investors to remain calm and carry on.
Retail giants like Target and Walmart have lowered their earnings forecasts, while others are laying off workers and reorganizing to survive.
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