ISTANBUL (AA) – JPMorgan Chase CEO Jamie Dimon said Tuesday that record inflation may derail the US economy and cause a recession in 2023.

Dimon said American consumers have saved $1.5 trillion from stimulus programs during the coronavirus pandemic but they are now spending 10% compared to 2021 because of higher inflation.

“Inflation is eroding everything I just said, and that trillion and a half dollars will run out sometime mid-year next year,” Dimon told US network CNBC’s Squawk Box.

The 66-year-old veteran CEO stressed that the US Federal Reserve’s aggressive monetary tightening cycle is causing its benchmark interest rate to climb toward 5% and even that level “may not be sufficient” to overcome inflation.

“When you’re looking out forward, those things may very well derail the economy and cause a mild or hard recession that people worry about,” he said.

The Fed raised interest rates by 75 basis points Nov. 2 for a fourth consecutive time, raising the target range for the federal funds rate to between 3.75% and 4% — its highest since January 2008.

The aggressive rate hikes have caused annual consumer inflation to come in at 7.7% in October, easing from the 8.2% gain in September. Annual producer inflation rose 8% in October, slowing from September’s 8.4% gain year-on-year.