JPMorgan Chase & Co. (NYSE: JPM) executive Daniel Pinto warned equity markets could fall as much as 40 percent in the next two to three years, according to Bloomberg News.

"The equity market has some way to go for the next year to two," Pinto said in an interview with Bloomberg TV. "But then, if there is a correction, it could be a deep correction. It could be between 20 and 40 percent depending on the valuations at the time. The most important thing for someone like us is just to be prepared."

Pinto said that market corrections tend to be the result of many factors, but he highlights that the central bank activity could potentially be a pitfall for global markets.

JPMorgan CEO, Jamie Dimon, voiced his concerns regarding Pinto’s comments about the recently passed tariffs and trade wars, saying that a recession could be as early as late 2019.

"If it continues and it gets worse, then it will hurt growth, it will hurt investment," Dimon said in a separate interview with Bloomberg Television on Thursday. "It could offset some of the very huge positives we’ve had from competitive tax reform.”

"Markets are going to be nervous, nervous about anything. Nervous about anything that relates to inflation, nervous about anything that relates to growth," said Pintio. "These tariffs, if they go a lot beyond what has been announced, it is something that will concern the markets about future growth."

The ongoing events has stirred fear in the market, causing the Dow Jones to lose almost 1,500 points since the largest biggest point decline in history early February.

Fears rose regarding the new Chair of the Federal Reserve, Jerome Powell , rising interests rates, concerns about higher inflations, and wages.

Investors are saying that if the market continues its strong bullish trend, it could lead to higher inflation rates, which could force the Federal Reserve to raise interest rates faster than expected.

The Dow Jones fell by 300 points at the opening on Wednesday after U.S. President Donald Trump’s head of National Economic Council, Gary Cohn, resigned. His resignation comes shortly after Trump had announced his 25 percent tariff on steel imports.