Jamie Dimon says inflation eroding consumer wealth may cause recession next year

JPMorgan Chase CEO Jamie Dimon said that inflation could tip the U.S. economy into recession next year.

While consumers and companies are currently in good shape, that may not last much longer, Dimon said Tuesday on CNBC’s “Squawk Box.” Consumers have $1.5 trillion in excess savings from pandemic stimulus programs and are spending 10% more than in 2021, he said.

“Inflation is eroding everything I just said, and that trillion and a half dollars will run out sometime mid year next year,” Dimon said. It “may very well derail the economy and cause a mild or hard recession that people worry about.”

Dimon, 66, has led the New York-based bank since 2006. Under his leadership, JPMorgan became the biggest U.S. bank by assets as it weathered the 2008 financial crisis, its aftermath and the 2020 coronavirus pandemic.

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