JPMorgan Chase still expects a recession in the US

JPMorgan Chase still expects a recession in the US
Finance13 Jan ’23 at 15:44Author of the book: Remy Cook

JPMorgan Chase has set aside nearly $1.5 billion ahead of a possible mild recession in the U.S. Reuters reported. The bank expects a slowdown despite a better-than-expected quarter with substantial profits.

The news sent shares of America’s biggest bank down as much as 3 percent. CEO Jamie Dimon noted that consumers are still spending more, and while companies appear to be financially healthy, he also noted some economic uncertainty.

JPMorgan Chase has set aside nearly $1.5 billion in anticipation of a mild U.S. recession. Reuters reported. The bank is expecting a slowdown, despite expected quarter-on-quarter profits. (ANP / Associated Press)

Outcome unknown

“We still don’t know what the ultimate outcome of the geopolitical tensions that are currently raging will be,” he said. ‘We have war in Ukraine, energy and food shortages and hyperinflation.’ With that in mind, JPMorgan Chase warned of a slight slowdown in the macroeconomic future, “perhaps accompanied by a mild recession.”

Also Read | JP Morgan and Wells Fargo reported lower earnings in the third quarter

In total, JPMorgan Chase posted a profit of about $11 billion in the last quarter of 2022, better than analysts had initially estimated. Compared to a year ago, the bank posted a profit of $10.4 billion.

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