JPMorgan CEO Jamie Dimon says 'normal effects of recession' will be delayed until late this year or early next

• JPMorgan CEO Jamie Dimon said in a Tuesday interview with MSNBC that "we're in a recession, but you're going to have a delayed effect of seeing the normal effect of recession."
• The normal recession effects might not come until "late this year or early next year."
• He also said that the Payroll Protection Program likely saved 30 million to 35 million jobs.
• Read more on Business Insider.

The US economy might not feel the normal effects of the coronavirus pandemic recession until late this year or early next year, JPMorgan CEO Jamie Dimon said in a Tuesday interview with MSNBC.

"We're in a recession," said Dimon, the only person who has led a major bank through both the 2008 global financial crisis and the current pandemic recession. "But you're going to have a delayed effect of seeing the normal effect of a recession, that may not happen until late this year or early next year."

Dimon added that eventually, the pandemic recession will effect people's incomes and home prices, and has "already injected government largesse."

The US officially fell into a recession in February from the shock of the coronavirus pandemic and sweeping lockdowns that began mid-March to contain the spread of disease. In the earliest months of the recovery from the pandemic recession, the pace looked strong — jobs rebounded at a record clip, unemployment declined, and consumer sentiment and spending jumped.

But in July, the recovery lost steam as new coronavirus cases spiked in some parts of the US, forcing states to pause or roll back their reopening plans. US employers added jobs back and the unemployment rate declined in July, but the pace of gains slowed significantly.

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If the current pace continues, it will take years for the labor market to reach pre-pandemic levels, meaning that the unemployment rate will stay elevated as well, more in line with a traditional recession.

Dimon also said Treasury Secretary Steven Mnuchin, Federal Reserve Chair Jerome Powell, the Trump administration, and the Democrats and Republicans in Congress deserve credit for their swift actions to provide support amid the crisis.

"Who'd have thought they could move that quick?" said Dimon, adding that the Payroll Protection Program probably saved between 30 million and 35 million jobs.

Still, Dimon said that the US is not yet through the pandemic, and more action is needed from government leaders, "particularly for small business, unemployment insurance, et cetera, to get us through the next three to six months as we open up."