JP Morgan, the giant US Bank, is bracing for a worsening economy next year. JPMorgan said that inflation would threaten consumer demands. Therefore, this bank said the central bank must consider a strategy to counteract the slowdown economy.

JPMorgan Chase & Co Chief Executive Jamie Dimon told CNBC that consumers and companies are in good shape. This trend may not last long because of the economic slowdown and inflation that erodes consumers spending power.

"Those things might very well derail the economy and cause this mild to hoard recession that people are worried about," he said. He also mentioned that the consumers have $1.5 trillion in excess savings from the pandemic stimulus program to round in mid-2023.

Reserves may pause for three to six months after raising benchmark interest rates to 5%. And if this condition does occur, JPMorgan said that this would not be sufficient to curb high inflation, so the FED signaled smaller hikes as soon as its next meeting.

JP Morgan Also Warns of Recession as Inflation Hurts Consumers: "It Could Be a Hurricane"

On Wednesday, JPMorgan Chase CEO Jamie Dimo warned a lot about the current state of the economy. It was stated that stubbornly high inflation could trigger the US Economic recession next year. 

So steep prices cause consumer spending to dry up while maintaining the business sector. The head of the largest bank in the US first sounded the alarm over the state of the economy in early May by alluding to its concern.

It is over inflationary pressures, a hawkish FED, and the war in Ukraine. He said the FED's quantitative tightening strategy could save. In addition, the US central bank also embarked on one of the fastest monetary tightening paths in decades. 

The goal is for the economy to improve again within the following year. He uses the term "hurricane on the horizon" to describe the state of the US economy. The job market remains surprisingly tight, and competition has been extreme. 

The slowing economy has also become a hot topic among banking circles because it damages the labor sector. He also noted that the world economy is in the middle of a reordering as geopolitical tensions shift.

And so on Wednesday night. US Consumer prices rise, and inflation remains near the highest since the 1980s. Indeed, the results in October have fallen, but this is still in the area around the highest since the 1980.

The Condition is Exacerbated by FED Chair Powell, Who is Experiencing Communication Problems With the Market

Rates may seem nervous, and for Comati inflation, we need something that can burden the stress. It was even stated that the FED was required to adjust the living expenses and routing habits accordingly. And fixed expenses will be considered first.

Discussing the expenses and household may be essential, and the goal is to differentiate effectively and act accordingly when necessary. However, precisely this is another matter. FED said that, for now, they need help communicating with the market.

Since last Tuesday, CNBC has noted that FED Chair Powell is experiencing problems communicating with the market. Federal Reserve Chair Jerome Powell stated this in his speech, so it will take longer to tame inflation.

The market's reaction highlights the communication challenges currently being faced by the FED. The greater the loosening of financial condition, the risk of meeting the inflation objective. Allianz's chief economic adviser also said that this could be a disaster.

Inflation in the US is very risky because it can lead to a recession. It was stated that in 2023 if the FED still does not find the right strategy, the consumer price index will increase and create a recession risk that economic executives in the US will face.