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- JPMorgan CEO Jamie Dimon said in an interview on Tuesday with MSNBC that “we are in a recession, but you will have the delayed impact of seeing the normal impact of the recession. ”
- Normal recession effects may not come until “later this year or early next year.”;
- He also said that the Payroll Protection Program has the potential to save between 30 and 35 million jobs.
- Read more on Business Insider.
JPMorgan CEO Jamie Dimon said in a Tuesday interview with MSNBC the US economy may not feel the normal effects of the coronavirus pandemic recession until later this year or early next year. .
“We are in a recession,” said Dimon, the only person to have led a large bank through both the 2008 global financial crisis and the current depression pandemic. “But you’ll have a lagging effect when you see the normal impact of a recession, which may not happen until the end of this year or early next year.”
Dimon added that the recession will eventually affect people’s incomes and house prices, and has “injected into government subsidies.”
The United States officially fell into recession in February due to the shock of the coronavirus pandemic and mass closures that began in mid-March to stop the spread of the disease. In the first months of a post-pandemic recession recovery, the pace looked strong – jobs rebounded at record levels, unemployment fell, and consumer sentiment and spending soared.
But in July, the recovery lost steam as new coronavirus infections spiked in some parts of the United States, forcing states to either pause or delay reopening plans. US employers added jobs again and unemployment dropped in July, but growth slowed significantly.
Read more: JPMorgan says buy 19 of these ‘rough diamond’ stocks that have fallen from annual highs, but are loaded in the spring to make big gains ahead.
If the current rate continues, it will take years for the labor market to reach pre-pandemic levels, meaning that unemployment will continue to soar, more in line with the traditional recession.
Dimon also said Treasury Secretary Steven Mnuchin, Federal Reserve Chairman Jerome Powell, the Trump administration, and Democrats and Republicans in Congress deserve credit for their swift actions. to assist in a crisis setting.
“Who would have thought they could move that fast?” Dimon said, adding that the Payroll Protection Program could have saved between 30 million and 35 million jobs.
However, Dimon said that the US has not yet weathered the pandemic and that more action from government leaders is needed, “especially for small businesses, unemployment insurance, etc., to help us. pass the next three to six months as we open. ”