JPMorgan CEO warns Wall Street to prepare for a recession: ‘Dangerous and inflationary’

Published

2 years ago

December 7, 2023

admin

JPMorgan chief Jamie Dimon sounded the alarm on a possible recession, warning Wall Street to prepare for the threat of rising interest rates even as inflation slows.

A lot of things out there are dangerous and inflationary. Be prepared, Dimon said 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.

Dimon’s comments suggest that he doesn’t forecast a rate cut following the next two-day Federal Open Market Committee meeting on Dec. 11 and 12.

Federal Reserve officials have unanimously decided to keep the benchmark federal funds rate at its current 22-year high, between 5.25% and 5.5%, for the past two policy meetings with little indication that theyll slash interest rates moving forward.

Fed Chair Jerome Powell even reiterated during his closely watched speech during the International Monetary Funds policy panel in Washington, DC, earlier this month: “If it becomes appropriate to tighten policy further, we will not hesitate to do so.”

Economists have been divided on what central bankers’ next move is — and whether it means the US economy is in for a soft landing, which will see it skirting a recession, or a hard landing.

“Im cautious about the economy,” Dimon said, per CNN.

The 67-year-old investment banking boss also noted that “inflation is hurting people,” and in a moment of positivity, pointed to the resilient labor market.

Representatives for Dimon at JPMorgan declined to comment.

Economists have cited October’s weaker-than-expected jobs report — when the Bureau of Labor Statistics reported that the US economy added 150,000 positions — as a signal that an interest rate cut is forthcoming.

The unemployment rate is now 3.9%, the agency said, above the Feds 3.8% year-end forecast.

Inflation has also trended weaker than central bankers estimates as Americans see some reprieve from the Feds aggressive tightening cycle, which began in March 2022, when rates were between 0.25% and 0.5%.

By June of last year, inflation peaked at 9.1% and rates have since increased at a pace not seen in 40 years.

The Fed hasn’t cut interest rates in over a year despite falling inflation, which slowed to 3.2% in October, according to the Consumer Price Index, which tracks changes in the costs of everyday goods and services.

The figure marked a drop from Septembers 3.7% advance, though it remains well above the Fed’s 2% inflation target, which the US economy hasnt seen since 2012.

In an interview with Bloomberg TV last month, Dimon suggested that Americans are in for an interest-rate hike as steep as 1.5 percentage points, to a staggering 7%, which would mark the highest federal funds rate sine December 1990.

Dimon’s warnings of a recession echo those of hedge fund titan Bill Ackman, who said just this week that the Fed needs to slash interest rates as early as the first quarter in order to avert a real risk of a hard landing for the US economy.

Ackman told Bloomberg that if the Fed keeps rates around the 5.5% range while inflation trends below 3%, thats a very high real rate of interest.

Whats 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 theres a real risk of a hard landing if the Fed doesnt start cutting rates pretty soon, Ackman added, per Bloomberg, noting that hes seen evidence of a weakening economy.

Traders, however, arent fully pricing in a rate cut until the end of 2024s second quarter, in June, Bloomberg reported, citing swaps market data.

The chance of a cut happening in May is some 80%, the data showed.

US

Charlie Kirk posthumously awarded Presidential Medal of Freedom by Donald Trump

Published

48 mins ago

October 15, 2025

admin

Charlie Kirk posthumously awarded Presidential Medal of Freedom by Donald Trump

Charlie Kirk has been posthumously awarded the Presidential Medal of Freedom by Donald Trump.

The USA’s highest civilian honour was received by the conservative activist’s widow, Erika, at the White House.

Mr Kirk, 31, was fatally shot on 10 September while speaking at an event at Utah Valley University.

He founded Turning Point USA and toured American university campuses, debating students about current affairs.

Addressing those attending the ceremony in the White House rose garden, the US president said they were there to “honour and remember a fearless warrior for liberty” and a “beloved leader who galvanised the next generation”.

He said Mr Kirk’s name was being entered “forever into the eternal roster of true American heroes”.

Mr Trump described Charlie Kirk as an “American patriot of the deepest conviction, the finest quality and the highest calibre”.

He said his nation had been “robbed” of an “extraordinary champion”.

And Mr Trump said Mr Kirk was assassinated in the “prime of his life for boldly speaking the truth, for living his faith, and relentlessly fighting for a better and stronger America”.

The ceremony coincided with what would have been Mr Kirk’s 32nd birthday.

Mr Trump described Erika Kirk, now head of Turning Point USA, as someone who had “endured unspeakable hardship with unbelievable strength”.

A 22-year-old man, Tyler Robinson, from the city of Washington in Utah has been charged with Mr Kirk’s murder. Prosecutors said they would seek the death penalty.

At a memorial event held at a stadium in Arizona, Erika Kirk told an enormous crowd she forgave her husband’s killer.

“The answer to hate is not hate,” she said.

US

Grammy-winning R&B and soul star D’Angelo dies after ‘prolonged battle with cancer’

Published

48 mins ago

October 15, 2025

admin

Grammy-winning R&B and soul star D'Angelo dies after 'prolonged battle with cancer'

Grammy-award winning R&B and soul singer D’Angelo has died following a battle with pancreatic cancer, his family has said.

He died on Tuesday, leaving behind a “legacy of extraordinarily moving music” following a “prolonged and courageous battle with cancer,” his family said in a statement.

The prominent musician, born Michael D’Angelo Archer, was 51 years old.

A family statement said: “We are saddened that he can only leave dear memories with his family, but we are eternally grateful for the legacy of extraordinarily moving music he leaves behind.

“We ask that you respect our privacy during this difficult time, but invite you all join us in mourning his passing while also celebrating the gift of song that he has left for the world.”

The singer rose to prominence in the 1990s with his first album, Brown Sugar.

The track “Lady” from that album reached No. 10 in March 1996 and remained on Billboard’s Hot 100 chart for 20 weeks.

Entertainment

Stars of sumo head to London’s Royal Albert Hall – and noodles sell out

Published

2 hours ago

October 15, 2025

admin

Stars of sumo head to London's Royal Albert Hall - and noodles sell out

They’re getting through 70kg of rice a day and the wholesaler has run out of noodles. Yes, Sumo returns to London on Wednesday.

It’s just the second time a Grand Tournament has been held outside of Japan – and this is a sport that has records going back more than 1,500 years.

It’s 34 years since the Royal Albert Hall hosted the only previous such event on foreign soil – and the appetite for tickets meant all five days sold out immediately.

Much of the focus is on the two grand champions or yokozuna, the 74th and 75th men to attain the rank.

They’re the Mongolian Hoshoryu Tomokatsu, plus Japan’s Onosato Daiki – who this year became the quickest wrestler to achieve the rank in the modern era.

“I’m happy that Sumo is back after so many years,” Onosato said. “I hope I can show the UK fans how fantastic Sumo is.”

“Being a yokozuna has a lot of responsibility,” Hoshoryu told Sky Sports. “We have to show everyone an example of what a yokozuna is – and that’s very difficult.

“My uncle was a yokozuna – and I’m happy to follow in his footsteps. But I came here to London as a yokozuna which he didn’t, so I’m even happier.”

The two are already great rivals.

At the recent Aki Basho – the most prestigious tournament on the sumo calendar – the pair finished with identical records after 15 days of bouts.

It all came down to a final play-off between the two yokozuna – the first time that had happened in 16 years. It was Onosato who came out on top on that occasion.

Hoshoryu says he is a big fan of basketball and football. He follows Chelsea, although his favourite players are going back a bit: “Didier Drogba and Petr Cech. He’s the ‘keeper. I like this guy!”

Early starts and a hearty stew: The life of a rikishi

The wrestlers – or rikishi – have a rigorous training regime.

They live in communal blocks called stables and practice starts early. Perhaps surprisingly, everyone skips breakfast. After training and practice – and for the younger rikishi, chores – the wrestlers all eat together.

The staple of their diet is chankonabe, a hearty stew packed with meat and vegetables. The feeding of the 40 rikishi who have come over for the five-day tournament is a challenge in itself.

Donagh Collins, the CEO of co-organisers Askonas Holt, said: “We are going through 70 kilos of rice a day. Somebody told me that the wholesaler for the noodles has run out of noodles. We’re really pushing the system here.”

The ring – or dohyo – is just 4.55m in diameter and quite small when two giant wrestlers leap at each other.

The aim of the fights is to either get your opponent onto the floor – or, more spectacularly, shove or hurl them out of the dohyo, so spectators in the ringside seats may be getting extremely up-close to the wrestlers.

The last time the tournament was in Britain, the massive Konishiki, known as the Dump Truck, took centre stage.

The giant Hawaiian was the heaviest-ever rikishi coming in at 287kg – or 45 stone. That’s a lot of wrestler to dodge if he comes falling out of the ring towards you.

The Royal Albert Hall may be firstly a concert venue, but it has hosted the likes of John McEnroe, Lennox Lewis and even Muhammad Ali.

And for the next five days, the cream of the world of sumo will be thrilling the crowds – provided a new noodle supplier is found.

What is a yokozuna?

Yokozuna is the highest rank in sumo, with its name meaning “horizontal rope” and refers to the rope worn around a competitor’s waist as they enter the ring.