Jamie Dimon, CEO of JP Morgan, issues a warning, citing the failures of #SiliconValley Bank and #SignatureBank that the recent banking crisis raises the likelihood of a US recession.
The recent banking crisis, according to #JPMorgan CEO Jamie Dimon, could make a recession more likely. The closure of Silicon Valley Bank and Signature Bankâthe two worst banking failures since the 2008 financial crisisâwas named by Dimon in a CNN interview as one of the reasons for the current anxiety in the banking industry.
The effects of the liquidation of the aforementioned banks and Credit Suisse will be felt for years to come, according to Dimon, who just sent a letter to shareholders about the financial crisis. He also spoke on how the crisis would affect the nation's economic situation, expressing concern that it might raise the likelihood of a recession.
The JP Morgan CEO emphasized that while a recession won't necessarily be forced by the #bankingcrisis it would still occur due to lenders cutting back, withdrawing, and limiting lending. This occurs while the US economy continues to look bleak, the battle against inflation intensifies, and the value of the dollar declines.
The warning from Dimon is clearly a dire prediction for the US economy, which is still dealing with a number of difficulties. It is crucial to remember that even if there may be a higher chance of a #recession it is still not a given. Further steps could be done to stabilize the banking industry and prevent a recession as long as the situation is flux.
This news is republished from https://coinaquarium.io/