According to the CEO of JP Morgan, Jamie Dimon who does not support Bitcoin stated that people could relax and there was no need to be tense or anxious as he did not see any global recession. It was true that DOW and other stock market figures were going through a decline, but that is not hinting on an immediate economic downturn. He stated that there is no scenario of the global recession shortly and asked the public not to panic and “take a deep breath” and stay calm
Talking to Fox Business, he said that various circumstances lead to the ongoing slump, but the US is still showing a growth of 2.5%. The hiking of interest rate along with the trade war with China has led to the downfall and has affected the market to a great extent, but the things are under control, and the market has sprung back. He stated “It looks to me like a slowdown [not a recession]. Sentiment changed dramatically for a whole bunch of different reasons. But the United States is still growing, at 2.5%. We just had some good wage data.”
In spite of the negative market trends, the US economy looks great at present. It has increased fresh employments by 312,000 as against the expected 177,000. The unemployment rate has been at a 48-year low. He added that we would not see any considerable economic progress but that does not suggest depression altogether.
He stated that “It looks like there will be growth. It’s not like we’re going into a global recession. We’re going to have maybe slower growth than people expected a couple of months ago.”
Meanwhile, Jamie Dimon expressed his view by stating that the US consumer sentiment is in “good shape” and has a tendency for improvement shortly. He added that “If you look at actual data, people are getting jobs; more people [are] working, wages going up. Household balance sheet in very good shape, credit card credit — extraordinarily good. It’s better than we deserve at this point in the cycle.”.
In contrast to Dimon’s view, Canadian economist David Rosenberg does not see any positivity in the Dow’s rally and believes that there is 80% possibility of a recession owing to the Feds interest hike, and the Federal Reserve chairman Jerome Powell would be the culprit for the upcoming disaster.
Rosenberg told CNBC “We’ve got more than 80% chance of recession just based on the fact the Fed is tightening policy,”
In the two-year presidency of Donald Trump, the Fed had increased the interest rate for seven-time as compared to a mere two times during the eight years when Barack Obama held the presidency office. Powell was flanked with criticism when the Fed hiked the interest rates for the fourth time in 2018 which also resulted in a stock market crash.