Wall Street bosses warn of looming global recession

The world faces its most serious crisis since the Second World War and could plunge into a global recession, top bosses of Wall Street have warned.

Jamie Dimon, chairman of JP Morgan, has said the world is a ‘scary and unpredictable’ place because of Israel’s war with Hamas and Russia’s invasion of Ukraine.

‘Here in the US we continue to have a strong economy… But these geopolitical matters are very serious – arguably the most serious since 1938,’ he told the Sunday Times. 

Economists have warned that ongoing hostilities in the Middle East could affect global economies through higher energy prices and lower consumer confidence.

Larry Fink, chief executive of BlackRock, the world’s biggest asset manager, said at the weekend: ‘Rising fear creates a withdrawal from consumption or spending more.

‘So fear creates recessions in the long run, and if we continue to have rising fear, the probability of a European recession grows and the probability of a US recession grows.’