As inflation remains high and the Federal Reserve continues to hike interest rates, the CEO of the largest bank in America, Jamie Dimon, has predicted that the U.S. is just months away from a recession.
Dimon, the CEO of JPMorgan Chase, told CNBC News on Monday that Europe is already in a recession and the U.S. is likely to go down that same path in 2023.
“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 told CNBC’s reporter at the JPM Techstars conference in London.
While Dimon said that the U.S. economy is “actually still doing well” for the moment, he warned that the Fed’s measures to fight inflation, coupled with international issues stemming from the Ukraine-Russia war, could make for a rocky new year.
“But you can’t talk about the economy without talking about stuff in the future — and this is serious stuff,” Dimon said.
Dimon particularly criticized the Fed’s policies as it has tried to control the inflation crisis with repeated interest-rate increases.
He noted that the American central bank is “clearly catching up” after it “waited too long and did too little” to address the issue of inflation that hit record highs over the summer.
For several months, the Fed introduced interest rate hikes. In September, it raised the rates yet another three-quarters of a percentage point, CNBC News reported.
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The Fed has also indicated that it will keep hiking the rates, CNBC reported.
While Dimon predicted an upcoming recession, he said he could not predict how long it might last, CNBC reported.
“It can go from very mild to quite hard and a lot will…