JPMorgan Chase Warns US Is ‘Past the Point of No Return’
JPMorgan Chase strategists warned Monday that recession chances have surged amid the banking crisis since the collapse of Silicon Valley Bank.
“The Fed is facing a difficult task on Wednesday, but it is likely already past the point of no return,” JPMorgan’s strategists wrote in a note to clients this week, according to news outlets. “A soft landing now looks unlikely, with the airplane in a tailspin (lack of market confidence) and engines about to turn off (bank lending).”
That warning came ahead of the Federal Reserve’s meeting this week in which members of the Federal Open Market Committee will decide on whether to raise interest rates again in the midst of decades-high inflation. Starting last year, the Fed has incrementally raised rates to their highest levels in years, a move that drew warnings from economists that a recession could come later this year or next year….