JPMorgan CEO Jamie Dimon Warns of Higher Interest Rates and Recession — ‘I’m Not Trying to Scare People’

JPMorgan Chase CEO Jamie Dimon has warned that thing atrocious whitethorn hap successful the U.S. economy. “I’m not trying to scare people. I’m much successful the class that thing could spell wrong,” helium stressed. “A batch of things retired determination are unsafe and inflationary. Be prepared … Interest rates whitethorn spell up and that mightiness pb to recession.”

Jamie Dimon Says ‘Be Prepared’

The CEO of JPMorgan Chase, Jamie Dimon, issued respective warnings regarding the U.S. system this week astatine the 2023 New York Times Dealbook Summit successful New York and the Global Investment Summit organized by British Prime Minister Rishi Sunak successful London.

Elaborating connected his caller informing of “the astir unsafe time the satellite has seen successful decades,” Dimon said astatine the Dealbook Summit connected Wednesday: “If you look astatine past and you unfastened a paper of immoderate month, immoderate year, of course, there’s ever pugnacious worldly going connected — wars, depressions, recessions….” He explained that the existent situation, including the warfare successful Ukraine, the immense humanitarian crisis, and the atomic blackmail, is affecting all, including lipid and gas, migration, nutrient costs, arsenic good arsenic planetary subject and economical relationships. “That’s beauteous pugnacious and that’s earlier the violent onslaught successful Israel,” Dimon opined.

Noting that these events are “dangerous,” the JPMorgan enforcement emphasized: “If you look astatine the past of battles similar this, they’re unpredictable. You don’t cognize the afloat effect.” He continued:

I look astatine a batch of things retired determination … some unsafe and inflationary. So I conscionable say: beryllium prepared. … The rates whitethorn spell up — some the abbreviated complaint and the 10-year rate, and beryllium prepared that mightiness pb to recession.

Commenting connected the existent authorities of the economy, Dimon described: “When radical look astatine the existent system and things are going bully … We’ve had a small spot of drugs injected straight into our strategy called ‘fiscal stimulation,’ the largest we’ve ever had successful peacetime … But they are drugs moving done the system, and they make this benignant of sweetener high, and we’re successful a sweetener high.”

The JPMorgan brag further shared: “Corporate profits are up due to the fact that radical are spending a batch of money. Where bash they get the money? The authorities gave it to them. Well, of course, profits are up … So, I’m rather cautious astir the economy.” Dimon further asserted that the satellite isn’t acceptable for a 7% involvement rate.

Dimon Anticipates ‘Something Could Go Wrong’

At the Global Investment Summit organized by Prime Minister Sunak connected Tuesday, Dimon warned that thing economically atrocious whitethorn happen. Cautioning that the satellite is present facing a “dangerous cocktail” of risks that could beryllium “explosive” for the planetary economy, the JPMorgan CEO said:

You can’t beryllium present and accidental that thing atrocious whitethorn not happen. I’m not trying to scare people. I’m much successful the class that thing could spell wrong.

He cautioned that ostentation is apt to persist astatine elevated levels for longer. “We’re connected this sweetener precocious and I’m not saying this ends successful a slump [but] I deliberation there’s much inflationary forces retired determination … There’s a higher accidental that rates spell higher, ostentation doesn’t spell away, and each these things origin much problems of immoderate sort,” the enforcement detailed.

Earlier successful the existent month, Dimon expressed his presumption that the Federal Reserve mightiness summation involvement rates further, stating: “I fishy that they whitethorn not beryllium done.” He added: “I deliberation there’s a accidental that ostentation is conscionable a small stickier than radical deliberation and their fiscal and monetary stimulus successful the past respective years is much than radical think. Unemployment is precise low.” Back successful September, Dimon had cautioned that the Fed could perchance raise involvement rates to 7%, which mightiness pb the U.S. system into stagflation. In October, helium disclosed his reflection of 2 “extraordinary” storm clouds impacting the U.S. economy. “One is the fiscal wealth being spent is truthful big, the largest successful peacetime ever — America and benignant of astir the satellite — with precise precocious deficits and QT we’ve ne'er had,” the enforcement detailed, clarifying: “The biggest tempest unreality is geopolitical.”

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