Prince said Finance News: After the Federal Reserve raised aggressive interest rates, major economies in the world have also begun to raise interest rates in order to curb inflation. Against this backdrop, the market's concerns about economic recession are becoming increasingly strong.
Even the International Monetary Fund (IMF) has begun to lower expectations for the future economy.
According to the specific data, the IMF predicts that in 2023, the world GDP will further slow down to 2.7%, which is 0.2 percentage points lower than the previous forecast; as for 2022, the IMF predicts that world GDP will grow by 3.2%. [See our previous article "IMF forecast: In 2022, the global GDP growth rate may be 3.2%, and Japan's 1.7%! What about China and the United States? 》】.
Now another Wall Street boss has also issued a warning, he is Jamie Dimon, CEO of JP Morgan, a well-known investment bank on Wall Street!
Dimon warned that many factors in the current environment, including inflation, rising interest rates and war, are "very, very serious". He even warned: " Europe is currently in recession, and the United States may fall into recession in the next 6-9 months. "
The CEO believes that although he believes the US economy is still performing well, the consumer situation is similar. It is much better than the subprime mortgage crisis in 2008, but he also emphasized in particular: "It's not just about the economy and not about the future. This is a serious matter."
In his opinion, it includes: high inflation, high interest rates in major economies (rate hikes), unknown effects of quantitative tightening, and geopolitical risks, etc. "These are very, very serious things. I mean, Europe has fallen into recession, and this may put the United States in some kind of recession in 6 to 9 months," Dimon added.
In fact, is not just Dimon, but Fed officials have also begun to worry more and more about the prospects of the recession.
For example: Charles Evans, the president of the Federal Reserve Bank of Chicago, said in a recent interview that he expressed his concerns about the Fed's handling of high inflation.
Coincidentally, Allianz chief economist Mohamed El-Erian also warned that the Fed made two big mistakes and would also trigger a "completely avoidable" economic recession in the United States. [See our previous article for details: Allianz Chief Economist Warned: The Fed made two big mistakes, and the United States will fall into a Great Recession? 》】
Finally, Dimon predicts that next, the US stock market - the S&P 500 may "relax 20% more easily", and this 20% drop will be more painful than the first time.
What do you think about this? What do you think will be the US economy next? What happens to the US stock market?
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