JPMorgan CEO Jamie Dimon Warns of Incoming Economic Hurricane — Says ‘You Better Brace Yourself’

JPMorgan CEO Jamie Dimon Warns of Incoming Economic Hurricane — Says ‘You Better Brace Yourself’

JPMorgan CEO Jamie Dimon Warns of Incoming Economic Hurricane — Says 'You Better Brace Yourself'

JPMorgan CEO Jamie Dimon has warned that an financial “hurricane” is coming. “You higher brace your self,” he suggested. “We simply don’t know if it’s a minor one or Superstorm Sandy.”

Jamie Dimon on the U.S. Economy and QT

The CEO of JPMorgan & Chase, Jamie Dimon, warned about an incoming financial hurricane Wednesday at a monetary convention sponsored by Alliancebernstein Holdings.

“It’s a hurricane,” Dimon exclaimed. While noting that “Right now it’s type of sunny, issues are doing wonderful, everybody thinks the Fed can deal with it,” the JPMorgan govt burdened:

That hurricane is correct on the market down the street coming our manner. We simply don’t know if it’s a minor one or Superstorm Sandy … You higher brace your self.

The JPMorgan chief stated in May that there have been “storm clouds.” However, he has now revised his forecast. “I stated there’s storm clouds, they’re huge storm clouds, they’re — it’s a hurricane,” he cautioned. “JPMorgan is bracing ourselves and we’re going to be very conservative with our stability sheet.”

Dimon is anxious about a number of key points. Firstly, the Federal Reserve is predicted to reverse its emergency bond-buying packages and shrink its stability sheet, and the quantitative tightening (QT) is scheduled to start this month.

The JPMorgan boss opined:

We’ve by no means had QT like this, so that you’re one thing you could possibly be writing historical past books on for 50 years.

He defined that central banks “don’t have a alternative as a result of there’s an excessive amount of liquidity within the system … They should take away a few of the liquidity to cease the hypothesis, scale back house costs and stuff like that.”

Dimon can be nervous concerning the Russia-Ukraine battle and its impression on commodities, together with meals and gasoline. He warned that oil may probably hit $150 to $175 a barrel.

Warning that “wars go dangerous” and there are “unintended penalties,” the chief burdened:

We’re not taking the right actions to guard Europe from what’s going to occur to grease within the brief run.

Last month, Dimon informed Bloomberg that the Federal Reserve ought to have moved sooner to boost rates of interest. He admitted that he’s nervous concerning the Fed beginning a recession.

A rising variety of individuals have just lately warned of a recession, together with the Big Short investor Michael Burry, Allianz’s chief financial advisor Mohamed El-Erian, and Tesla CEO Elon Musk.

Blackrock, the world’s largest asset supervisor with practically $10 trillion underneath administration, just lately defined: “If they [the Fed] hike rates of interest an excessive amount of, they threat triggering a recession. If they tighten not sufficient, the chance turns into runaway inflation.”

What do you concentrate on JPMorgan CEO Jamie Dimon’s warning? Let us know within the feedback part under.

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