Wall Street titan Jamie Dimon has warned of the possibility of a “mild to hard recession” as the Federal Reserve continues to raise interest rates, while mocking cryptocurrencies, calling them as useless as “pet stones.”
America’s global economic advantages could take a hit as the Fed continues to raise rates to fight inflation, the CEO of JPMorgan Chase said.
“The United States economy is the strongest economy in the world, so we have to celebrate that … that’s why capital is coming here,” Dimon said Tuesday. Interview on CNBC’s Squawk Box.
“If you look at the short term, the consumer is spending 10 percent more than last year and 40 percent more than before COVID. They have another 1.5 trillion dollars in their accounts.
But Dimon added, “Payments are now approaching 5%. If you’re going forward, these things could derail the economy and lead to the mild to severe recession that people are talking about … that could destroy the economy.” “
Dimon saved his most dire comments and dire predictions for cryptocurrency. In the wake of FTX’s collapse, he criticized crypto as a “complete show” – and added digital coins as useless as “pet gems”.
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The boss of JPMorgan has been warning that the economy could be in recession for months. according to leaked audio recording Earlier this year, Dimon told his wealthiest investors that he believed there was a 90% chance the US was headed for recession.
In June, Dimon made headlines for warning of an impending economic “storm.” He said Russia’s invasion of Ukraine — including what he likened to a new Cold War — and the Federal Reserve’s sharp reduction in the money supply could bring the economy downtown.
“It’s a hurricane. “It’s sunny now, things are going well, everyone thinks the Fed can handle it,” Dimon said.
“That storm is right there, on the way, coming at us,” he added. “We don’t know if it’s a small storm or Hurricane Sandy or Andrew or something like that. Better brace yourself.”