El-Erian: US Economy Is Going “Through the Windshield”

CEO of JP Morgan Chase, Jamie Dimon, thinks we’ll be in a recession in six to eight months. We are to believe we aren’t in a recession now since employment is still high.

Dimon, the CEO of JPMorgan Chase, told CNBC News on Monday that Europe is already in a recession, and the U.S. is likely to go down that same path in 2023.

“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 U.S. in some kind of recession six to nine months from now,” Dimon told CNBC’s reporter at the JPM Techstars conference in London.

He said the feds waited too long and did too little.

EL-ERIAN SAID THE SAME THING

El-Erian told Bloomberg the Feds are sending the economy “through the windshield.” He, too, is saying we aren’t in a recession yet.

He called it a “totally avoidable crisis.”

The chief economic adviser at Allianz SE has been a frequent critic of The Fed in recent years for refusing to see the non-transitory nature of inflation. Then when it was obviously not transitory, they did nothing. Now the Feds are increasing interest rates too fast.

The rapid pace of interest-rate hikes in response to inflation “is not stepping on the brakes; this is slamming the brakes,” El-Erian exclaimed.

“This is the most front-loaded interest-rate cycle that we have seen in a very long time, and it didn’t need to be this.”

One has to wonder why they kept saying the inflation was transitory. It wasn’t believable, but it did allow Democrats to keep spending.

“The economy is starting to go through the windshield; the financial system is starting to go through the windshield,” El-Erian warned.

Watch:

Peter Schiff, not known for his positive outlook, predicts double-digit inflation year after year.

We could head for stagflation.

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