OAN’s James Meyers
2:45 PM – Thursday, November 30, 2023
JPMorgan CEO Jamie Dimon says Wall Street should be prepared for a recession.
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He sounded the alarm on the real possibility of a recession saying, “A lot of things out there are dangerous and inflationary. Be prepared.” Dimon said this while at the New York Times DealBook Summit in New York on Wednesday.
“Interest rates may go up and that might lead to recession,” he added, according to CNN Business.
The remarks come after Federal Reserve officials have decided to keep the benchmark federal funds rate between 5.25% and 5.5%, which is a 22-year high.
Economists have also been divided on what the next move is for the economy, whether or not it means the economy will have a soft landing, or a hard landing.
“I’m cautious about the economy,” Dimon said, per CNN.
Meanwhile, the Bureau of Labor Statistics reported in October that the U.S. economy added 150,000 positions, which is a sign that an interest rate cut is on the horizon.
Currently, the unemployment rate is at 3.9%, which is above the Fed’s 3.8% year end-forecast.
In June 2022, inflation was at a staggering 9.1% and rates have continued to increase.
During an interview with Bloomberg TV in October, Dimon claimed that interest rates will hike up to a high 7%, which would make it the highest rate since 1990.
Hedge fund expert Bill Ackman said earlier in the week that the Federal Reserve needs to cut interest rates as soon as the first quarter to dodge “a real risk of a hard landing” for the U.S. economy.
“What’s happening is the real rate of interest, which is what impacts the economy, keeps increasing as inflation declines,” said the Pershing Square Capital Management founder.
“I think there’s a real risk of a hard landing if the Fed doesn’t start cutting rates pretty soon,” Ackman added, per Bloomberg, noting that he’s seen evidence of a weakening economy.
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