Jamie Dimon Warns Of Coming U.S. Recession

The banking crisis caused by the recent collapse of Silicon Valley Bank and Signature Bank has increased the odds of a US recession, JPMorgan Chase CEO Jamie Dimon told CNN’s Poppy Harlow in a recent exclusive interview, Nicole Goodkind reported for CNN.

Photo Insert: Speaking in his first interview since the failure of SVB, Dimon said that while the banking system is strong and sound, the recent turmoil around the financial system is “another weight on the scale” towards recession.

Speaking in his first interview since the failure of SVB, Dimon said that while the banking system is strong and sound, the recent turmoil around the financial system is “another weight on the scale” towards recession.

“We are seeing people reduce lending a little bit, cut back a little bit, and pull back a little bit.”

While the banking chaos won’t “necessarily force a recession,” he said, “it is recessionary.”

The Federal Reserve’s current tightening regimen, plus higher, sticky inflation and Russia’s war on Ukraine are the largest risks he sees for the economy. But Dimon said he does feel hopeful about the strength of human capital in the United States.

“I’m a red-blooded, full-throated, free-market, free-enterprise capitalist,” said Dimon of supporting local entrepreneurship. “I think we should applaud free enterprise and we should sing from the hills the benefits while we fix the negatives, as opposed to denigrate the whole thing.”

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