The global economy, including the US, will be hit by a recession in the next

Washington: Inflation flare-up, rising interest rates and the Russia-Ukraine conflict have a significant impact on the economy, and the world economy, including the United States, will be hit by a recession in the next six to nine months, warned Jamie Dimon, the Chief of JPMorgan. Dimon has consistently been making aware of the possibility of a US recession for some time now. At this time, he has drawn attention as he predicted that the global economy would go into recession along with the US.

Besides, Dimon warned that it was essential to think about the future while the US economy was doing well at the moment. Many indicators and global issues like the impact of surging inflation, higher-than-expected interest rates, changes in credit policy, and Russia’s conflict in Ukraine ranged alarm bells. ‘These are very, very serious things which I think are likely to push the US and the world — 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,’ said Dimon.

Moreover, the Chief of JPMorgan Chase, the US’s largest bank, criticised the Federal Reserve at this time. Dimon blamed the US Central Bank for taking steps against inflation too late. He added that now they have increased the interest rate rapidly and hopes they will succeed in bringing inflation under control that will hit the economy lightly. Dimon warned that the US public should be prepared because it was difficult to predict.

In the past few weeks, international financial institutions, economists, and analysts have been consistently pointing towards the possibility of a recession. In a joint meeting held on Monday by the International Monetary Fund (IMF) and the World Bank, they clearly warned that the world will be hit by recession in 2023. Earlier, it was warned in the report of the United Nations that the world would have to deal with a worse recession than the recession in 2007. Dimon’s statement confirms this.

Many leading global economies faced a significant downturn during the Coronavirus pandemic. It was predicted earlier this year that the economy would recover as the severity of the pandemic subsided. But the Russia-Ukraine conflict has changed the economic equations, and there are major upheavals in the global economy. The global economy is constantly being jolted due to the disrupted global supply chain and China’s Zero Covid Policy. The growth rates of major countries in the world are continuously declining. But countries like the US refuse to accept recession. However, Dimon’s statement indicates that the situation will not change with such policies.