(Reuters)

JPMorgan Chase & Co Chief Executive Jamie Dimon said today (October 10) that the United States and the global economy could tip into a recession by the middle of the next year, CNBC reported.

Runaway inflation, big interest rates hikes, the Russian invasion of Ukraine and the unknown effects of the Federal Reserve’s quantitative easing policy are among the indicators of a potential recession, Dimon said, according to the report.

“These are very, very serious things which I think are likely to push the U.S. and the world — I mean, Europe is already in recession — and they’re likely to put the US in some kind of recession six to nine months from now,” Dimon said in an interview with CNBC.

MAJOR US INDICES IN BEAR MARKET TERRITORY

His comments come as the big US banks are set to report their third-quarter earnings from Friday. So far this year, the benchmark S&P 500 index has lost about 24 per cent, with all three major US indices trading in bear market territory.

Earlier this year, Dimon had asked investors to brace for an economic “hurricane”, with JPMorgan, the biggest US investment bank, suspending share buybacks in July after missing quarterly Wall Street expectations.

World Bank President David Malpass and International Monetary Fund Managing Director Kristalina Georgieva have also warned of a growing risk of global recession and said inflation remained a problem after Russia’s invasion of Ukraine.