US headed for recession in '6 to 9 months,' JP Morgan Chase CEO warns

Many CFOs and financial experts, including Jamie Dimon, JP Morgan Chase CEO, are expecting a recession; he anticipates an economic downturn to hit the U.S. in mid-2023, CNBC reported Oct. 12.

Turbulent inflation, steep interest rates and Russia's invasion of Ukraine were some of the factors that informed Mr. Dimon's prediction. 

"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," Mr. Dimon told CNBC on Oct. 10 at the JPM Techstars conference in London.

But he added that the U.S. economy is "still doing well" and consumers are likely to be in a better position compared with the 2008 global recession.

The International Monetary Fund supported Mr. Dimon’s projection, arguing that record-high inflation rates pose a significant threat by squeezing incomes and destabilizing economic activities, The Wall Street Journal reported Oct. 11. 

A recession next year would compound the economic challenges many hospitals and health systems in the U.S. are facing. Recession planning in healthcare is difficult because it can have both negative (payer mix, patient volume) and positive effects (decrease in labor and supply inflation) on financial performance, according to Daniel Morash, senior vice president of finance and CFO for Boston-based Brigham and Women's Hospital.

"The best advice I would give is that hospitals need to consider recession scenarios when making long-term commitments on wage increases, capital expenditures and planning for capacity for patient access," Mr. Morash told Becker's Hospital Review. "Most of our focus needs to be on the acute challenges we are facing. Still, it's important to be careful not to overreact or overcommit financially when a recession could change a number of trends we're seeing now."

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars