Jamie Dimon sees recession beginning in subsequent 6-9 months, markets might get ‘disorderly’

JPMorgan Chase CEO Jamie Dimon mentioned Monday that present financial situations will seemingly push the U.S. right into a recession within the subsequent six to 9 months, amid “very critical” headwinds like inflation, rising rates of interest, quantitative tightening and the battle in Ukraine.

Talking to CNBC, the top of JPMorgan additionally warned that markets might grow to be “disorderly” as volatility will increase within the face of a fast-changing financial scenario.

near-term circumstances, Dimon mentioned the present financial system was nonetheless doing properly however confronted important headwinds that he thinks have already pushed Europe right into a downturn.

On an extended timeline, Dimon contended that it was tough to foretell how lengthy an eventual recession would final. Regardless of the substantial challenges, he mentioned the financial system would obtain a lift from a “robust” shopper and companies which have already proven resilience in the course of the COVID shutdowns.

“To guess is difficult. Be ready,” the JPMorgan CEO suggested.

Whereas the exact particulars of the financial outlook stay hazy, Dimon predicted that monetary markets (SP500) (NYSEARCA:SPY) will proceed to see broad swings, as contributors attempt to sustain with incoming data.

“The one assure … unstable markets. You are going to have unstable markets.” he mentioned. “I feel it is potential that you possibly can see [the markets] be disorderly at a while within the not too close to future.”

For extra on the present state of the inventory market, see why BTIG predicts that the S&P 500, which is at the moment sitting round 3,600, might head in direction of the three,400 stage later this month.