Recession is inevitable-US Banks
2022.12.06 13:56
Recession is inevitable-US Banks
Budrigannews.com – According to executives on Tuesday, the biggest banks in the United States are anticipating a worsening economy next year as inflation threatens consumer demand.
NYSE: JPMorgan Chase & Co. According to CEO Jamie Dimon, consumers and businesses are currently in good shape. However, he cautioned that this may not last for long as inflation reduces consumer spending power and the economy slows.
He stated, “Those things might very well derail the economy and cause this moderate to severe recession that people are worried about.”
According to what he told CNBC, consumers have saved $1.5 trillion from pandemic stimulus programs, but that money may run out sometime in the middle of next year. Dimon also stated that the Federal Reserve may pause for three to six months following a 5% interest rate increase, but that this may “not be sufficient” to reduce high inflation.
The U.S. central bank increased interest rates last month by 75 basis points to 3.75 percent-4.0 percent for the fourth time in a row. However, the central bank also indicated that it hoped to shift to smaller increases in borrowing costs at its next meeting.
NYSE: Bank of America At a Goldman Sachs (NYSE) investor meeting, CEO Brian Moynihan stated: financial conference that although the contraction will be “mild,” Bank of America’s research indicates “negative growth” in the first half of 2023.
David Solomon, CEO of Goldman Sachs, stated, “Economic growth is slowing.” Our customers appear extremely cautious when I speak with them.
He stated that talent competition is “as tough as ever” and the banking job market is “surprisingly tight.”
