Beautiful Virgin Islands

Tuesday, Jun 03, 2025

‘It Could Be a Hurricane’: JPMorgan CEO Warns Inflation Could Drag US Into Recession in 2023

‘It Could Be a Hurricane’: JPMorgan CEO Warns Inflation Could Drag US Into Recession in 2023

Even though economic reports continue to show strength in the US economy, investors are nonetheless behaving as if more volatile times are coming, dodging riskier bets and keeping market gains low.
Speaking to CNBC on Tuesday, Jamie Dimon, CEO of JPMorgan Chase, the largest US bank, predicted that the steady grind of inflation would virtually ensure a recession in the coming year.

Noting that millions of Americans stashed roughly $1.5 trillion from COVID-19 pandemic relief programs into their savings, Dimon said that inflation, which depreciates the value of the US dollar, was “eroding” it away.

“[T]hat $1.5 trillion will run out sometime mid-year next year," Dimon said. "When you are looking that forward, those things very well may derail the economy and cause this mild to severe recession that people are worried about."

The Federal Reserve has struggled to get inflation under control after it hit a 40-year high at the start of the year, although recent months have seen a slowing of its increase. As the central bank ratchets up interest rates, economists and investors alike are increasingly predicting a rise in unemployment and eventually a recession - the common side-effects of such a move.

"Indeed, many business leaders, beset by financial problems, higher employee wages, and a strengthening labor movement, have expressed their hope for such a downturn.

US inflation, at its worst in 40 years, is being driven by a number of factors, including various production and distribution troubles connected to the COVID-19 pandemic, the US-led Western boycott of Russian energy exports as retribution for its special operation in Ukraine, and price speculation by businesses, many of which have recorded record profits this year.

"Writing in Bloomberg on Tuesday, economist Scott Johnson further revised his 2023 predictions downward, warning the coming year could be one of the worst in decades.

According to his analysis, the global economy will grow just 2.4% in 2023, down from an expected 3.2% growth in 2022, and the smallest increase since 1993, not including the crisis years of 2009 and 2020. However, different parts of the planet are expected to have wildly different experiences, with China expected to grow more, while the US, UK, and European Union will see smaller gains amid inflationary troubles and central bank efforts to rein it in.

“In the US, with wage gains set to keep inflation above target, we think the Fed is headed toward a terminal rate of 5%, and will stay there till [the first quarter of 2024]. In the euro area, meanwhile, a more rapid decline in inflation will mean a lower terminal rate and the possibility of cuts at the end of 2023,” he wrote.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
×