Brian Moynihan vs. Jamie Dimon: How Could You Have an Unemployment-Less Recession?

"Inflation is eroding everything I just said, and that trillion and a half dollars will run out sometime midyear next year," Dimon said on Tuesday. "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.”

Adding to the pressure for borrowers, the Fed's benchmark interest rate is headed to 5%, Dimon noted. That rate "may not be sufficient" to subdue inflation, he added.

"How could you have an unemployment-less recession?" Moynihan asked on a program, citing the 263,000 new jobs reported in the U.S. jobs report on Friday.

The Bank of America CEO on Sunday said he expects the U.S. economy to contract by "just 1%" for the first three quarters of 2023, then return to positive growth. "This is a more mild recession," Moynihan said.

Moynihan's more upbeat take on the U.S.'s economic future contrasts sharply to other dire forecasts.

In October, Nouriel Roubini, the New York University professor often dubbed "Dr. Doom" for his predictions about the 2007 housing crash, said he expects the U.S. to face a "long and ugly" recession.

Mohamed El-Erian, chief economic advisor for Allianz, called out banks predicting a "short and shallow" recession.