- JPMorgan CEO Jamie Dimon said in a Tuesday interview with MSNBC that “we are in a recession, but you will have a delayed effect to see the normal effect of recession.”
- The normal effects of the recession may not come until “late this year or early next year.”
- He also said that the Payroll Protection Program would probably save 30 million to 35 million jobs.
- Read more about Business Insider.
The U.S. economy may not feel the normal effects of the coronavirus pandemic recession until late this year or early next year, JPMorgan CEO Jamie Dimon said in a Tuesday interview with MSNBC.
“We’re in a recession,” said Dimon, the only person to have led a major bank through both the 2008 global financial crisis and the current pandemic recession. “But you will have a delayed effect of seeing the normal effect of a recession, which may not happen until late this year or early next year.”
Dimon admitted that eventually the recession of pandemic affects people’s incomes and house prices, and ‘government largesse’ has already intervened. ‘
The US officially fell in February in a recession from the shock of the coronavirus pandemic and sweeping lockdowns that began in mid-March to contain the spread of disease. In the first months of the recovery from the pandemic’s recession, the pace was strong – jobs returned to a record high, unemployment fell, and consumer sentiment and spending skyrocketed.
But in July, the recovery lost steam when new cases of coronavirus spiked in some parts of the US, forcing states to suspend or roll back their rescheduling plans. U.S. employers added jobs back and unemployment levels fell in July, but the rate of profit dropped significantly.
Read more: JPMorgan says these 19 ‘diamonds are buying into the rough’ stocks that have fallen from annual highs but are spring-loaded for huge gains ahead
If the current pace continues, it will take years for the labor market to reach pre-pandemic levels, which means that the unemployment rate will also continue to rise, more in line with a traditional recession.
Dimon also said that Treasury Secretary Steven Mnuchin, Federal Reserve Chairman Jerome Powell, the Trump administration, and the Democrats and Republicans in Congress deserve credit for their swift action to provide support in the midst of the crisis.
“Who would have thought they could move that fast?” said Dimon, adding that the Payroll Protection Program is likely to save between 30 million and 35 million jobs.
However, Dimon said the US is not yet through the pandemic, and more action is needed from government leaders, “especially for small business, unemployment insurance, etc., to get us through the next three to six months when we open.”
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