Jamie Dimon says inflation eroding consumer wealth may cause recession next year

Inflation could cause the U.S. economy to go into a recession next year.

Consumers and companies are in good shape, but that may not last very long, according to CNBC CEO Jamie Dimon. Consumers have over a trillion dollars in savings and are spending more than they did in 2011.

The trillion and a half dollars will run out sometime next year due to inflation, according to the CEO. Those things could derail the economy and cause a mild or hard recession that people are worried about.

Concerns about the economy began to be raised by the veteran CEO of the company. He said in June that he was preparing his bank for an economic storm because of the Fed's reversal of bond-buying programs.

The Fed's benchmark interest rate is set to go to 5%. He said that the rate may not be enough.

During the wide-ranging interview, Dimon called cryptocurrencies a sideshow that is rife with criminality and said globalization was in the process of being partially reversed as supply chains are restructured.

The New York-based bank has a 66-year-old man in charge. As a result of his leadership, the bank became the biggest in the United States.

The banking industry will be able to weather a cycle of higher loan defaults even if the economy does not improve. Capital requirements were imposed on the industry after the 2008 crisis.

The American banking system is quite different. The capital cup ranneth over.