The CEO of the largest bank in America, JP Morgan, has issued warnings about the US economy in the near future and claimed he's 'far more worried' than some others appear to be.
Jamie Dimon has spoken out about his concerns in a number of recent interviews, including one with Bloomberg Television in which he noted that the economy has to deal with 'all the geopolitical stuff'.
Dimon told Bloomberg's Tom Mackenzie he was 'a little more nervous' about inflation not coming down 'like people expect', warning that such a situation 'might be a surprise' to the public.
He continued: "On the other hand, there's a lot of spending. There's a lot of government spending, which is inflationary too, by the way. And so, look, I don't know. I hope for the best, plan for the worst."
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Mackenzie appeared to try and alleviate fears by clarifying with Dimon that he was 'not worried about a recession in 2026 for the US' - but Dimon was quick to correct him.
"I think it could happen in 2026," he said. However, Dimon assured that he wasn't necessarily 'worried' about a recession.
"We'll deal with it," he said. "We'll serve our clients, will navigate through it. A lot of us been through them before. You don't wish it, because certain people get hurt, but it could happen in 2026."
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The last recession took place in 2020, when the economy took a downturn amid the coronavirus pandemic. The COVID-19 recession was the shortest on record, lasting just two months.
This claim about a potential recession from the head of the huge bank came as he also told the BBC he was 'a little worried' about inflation in the US, as well as sharing concerns that there is a higher risk of a serious fall in US stocks than is currently being reflected in the market.
Dimon added he was 'far more worried' than others about a serious market correction, which could happen in as soon as six months, saying the US had become a 'less reliable' partner on the world stage.
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The CEO pointed to a 'lot of things out there' creating uncertainty, including the geopolitical environment and fiscal spending.
"All these things cause a lot of issues that we don't know how to answer," he said.
"So I say the level of uncertainty should be higher in most people's minds than what I would call normal."
Emily Brown