US is headed for a recession, says head of JP Morgan Chase bank: ‘This is serious’

Jamie Dimon said the Federal Reserve waited too long and did too little' as inflation has surged in the past 18 months

The US and global economy is facing a very, very serious" mix of headwinds that is likely to cause a recession by the middle of next year, warned Jamie Dimon, chief executive of JP Morgan Chase, the largest US investment bank, on Monday.

Dimon pointed to the effects of runaway inflation, sharp interest rate rises and Russia's war in Ukraine, as factors that informed his thinking. But he added that the US is actually still doing well" and consumers were likely to be in better shape compared with the global financial crisis in 2008.