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JP Morgan CEO Jamie Dimon signals that a recession is imminent

Yahoo Finance Live anchors discuss JP Morgan CEO Jamie Dimon’s forecast for an economic recession.

Video Transcript

JULIE HYMAN: We also, of course, as we mentioned, heard from President Biden. And he's not an economist clearly. And traditionally, it's not like you're going to take this as a real prognostication of what's going to happen with the economy, but he did say in an interview, you know, that he expects a slight economic dip. Obviously, if the economy does not go well, it's not great for him. It's not great for the Democrats. It's not great ahead of the midterms. But nonetheless, it just shows you that everyone is commenting on this right now, and everyone is thinking about it.

BRAD SMITH: Right, from the White House, of course, the strategy would be to dampen any type of hurt that might be felt, or at least, in the broader sentiment going into that potential recession. Regardless of what that actually looks like, the White House going into a midterm election year, they're going to do their own positioning. The banks, they're also going to say, you know what? Maybe we do have a little bit more confidence in the Fed in a soft landing.

Or perhaps, there's the other stance from some of the banks. And we've continued to hear from JPMorgan Chase's Jamie Dimon as well, and just talking about, I guess, the hurricane that he was seeing and forecasting earlier this year, versus now, where even if there is a recession and, for the banks themselves, what they're going to have to navigate is not just the relationship with the consumers, how does the deal flow start to dry up, too? Are they looking towards this being an extended or protracted period of time?

And I think what they're trying to also do, to a certain extent, is perhaps sandbag just a little bit and say, yeah, it's actually worse than expected. You known those golfers before you step out on the course and you say, oh, man, you told me your handicap was about a 26.

BRIAN SOZZI: I'm a 40 handicap before we play at the end of this month.

BRAD SMITH: Exactly.

BRIAN SOZZI: I shoot 150.

BRAD SMITH: And so all that to say, there is going to be the relief that they're also trying to institute there. And so I think with all of the data points that have come out in mind, there's just one other one I wanted to raise, which is the digital price index. That came out from ADP-- or not ADP-- Adobe this morning.

And it actually kind of mirrors the CPI from the Bureau of Labor statistics. And that actually showed that electronics prices were down digitally, at least, 11% year over year, 1.2% month over month. And then in groceries, those prices, unfortunately, those continued to surge, rising about 8/10 of a percent month over month. So that kind of tees up the CPI data as well that we may be looking at.

JULIE HYMAN: Ooh, brace yourself.

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