JPMorgan Chase & Co Chief Executive Jamie Dimon said that the United States and the global economy could tip into a recession by the middle of the next year, CNBC reported Monday.
Runaway inflation, big interest rate hikes, the Russian invasion of Ukraine and the unknown effects of the Federal Reserve's quantitative easing policy are among the indicators of a potential recession, Dimon said, according to the report.
"These are very, very serious things which I think are likely to push the U.S. and the world — I mean, Europe is already in recession — and they're likely to put the U.S. in some kind of recession six to nine months from now," Dimon said in an interview with CNBC.
His comments come as the big U.S. banks are set to report their third-quarter earnings on Friday. So far this year, the benchmark S&P 500 index has lost about 24%, with all three major U.S. indices trading in the bear market territory.
Earlier this year, Dimon had asked investors to brace for an economic "hurricane," with JPMorgan, the biggest U.S. investment bank, suspending share buybacks in July after missing quarterly Wall Street expectations.
World Bank President David Malpass and International Monetary Fund Managing Director Kristalina Georgieva have also warned of a growing risk of global recession and said inflation remained a problem after Russia's invasion of Ukraine.
