Jamie Dimon, CEO of America’s largest bank, is watching world events for signs of just how deep America’s potential recession is.
Many on Wall Street, including Dimon’s own bank, JP Morgan Chase, predict the US will enter a recession early next year.
Dimon said he was “confused” about the current geopolitical risks. “It’s like anything goes wrong,” he told Margaret Brennan, moderator of CBS News “Face the Nation,” in an exclusive interview.
He pointed to various risk factors, including Russia’s war in Ukraine, fiscal turmoil in emerging markets, competition from the United States, and rising oil and food prices, as determining the economic outlook.
Dimon also said the Federal Reserve is probably lagging behind in adjusting policy to deal with rising prices.
“I think the Federal Reserve can tell anyone they see you’re late,” Dimon said. “I always make mistakes and I don’t like people who hesitate.” “But now they’re kind of catching up.”
Earlier this week, Federal Reserve Chairman Jerome Powell suggested the pace of rate hikes could slow. But Dimon thinks there may be room for more action after that.
“Then they might have to do a little more, which will obviously surprise people,” Dimon said.
He told Brennan that he believes the Fed will ultimately win its efforts to curb record-high inflation and bring it closer to the desired 2% level.
“I think they will win. I don’t think it will last 10 years,” Dimon said. “The only question is how long it will take you to get to the numbers people think you’ve won.
Still, the outlook for economic conditions and inflation remains uncertain. At an event at the Brookings Institution last week, Fed Chairman Jerome Powell reiterated that it is difficult to know how long inflation will stay high.
https://www.cbsnews.com/news/jamie-dimon-recession-geopolitical-risk/ Jamie Dimon looks to geopolitical risks for hints on the severity of the US recession