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"This Is Serious": Jamie Dimon Says S&P Could Shed Another 20%, Warns Of US Recession In 6 To 9 Months

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by Tyler Durden
Monday, Oct 10, 2022 - 04:45 PM

JPMorgan CEO Jamie Dimon has gone into doomer territory - warning that while the US economy is "actually still doing well" at the moment, there are "very, very serious things which I think are likely to push the US and the world" into Recession.

"I mean, Europe is already in recession - and they're likely to put the US in some kind of recession six to nine months from now," Dimon told CNBC's Julianna Tatelbaum on Monday.

Dimon also cited runaway inflation and interest rates shooting up more than expected, as well as the unknown effects of QE and the war in Ukraine.

"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," he said.

Dimon said that while the Fed raised "waited too long and did too little," that the central bank is "clearly catching up."

"From here we let’s all wish him success and keep our fingers crossed that they managed to slow down the economy enough so that whatever it is, is mild — and it is possible," he continued.

How long might a recession last?

"It can go from very mild to quite hard and a lot will be reliant on what happens with this war. So, I think to guess is hard, be prepared," Dimon said, adding that the one thing he could be sure of was market volatility - which could coincide with disorderly financial conditions."

Dimon also suggested that the S&P 500 could fall by "another easy 20%" from current levels, adding that "the next 20% would be much more painful than the first."

In June, Dimon warned of an "economic hurricane," adding "you'd better brace yourself."

Meanwhile, and possibly in reaction to Dimon's commentary, the market is not happy.

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