2 years ago
JPMorgan CEO Jamie Dimon has warned that an economical “hurricane” is coming. “You amended brace yourself,” helium advised. “We conscionable don’t cognize if it’s a insignificant 1 oregon Superstorm Sandy.”
Jamie Dimon connected the U.S. Economy and QT
The CEO of JPMorgan & Chase, Jamie Dimon, warned astir an incoming economical hurricane Wednesday astatine a fiscal league sponsored by Alliancebernstein Holdings.
“It’s a hurricane,” Dimon exclaimed. While noting that “Right present it’s benignant of sunny, things are doing fine, everyone thinks the Fed tin grip it,” the JPMorgan enforcement stressed:
That hurricane is close retired determination down the roadworthy coming our way. We conscionable don’t cognize if it’s a insignificant 1 oregon Superstorm Sandy … You amended brace yourself.
The JPMorgan main said successful May that determination were “storm clouds.” However, helium has present revised his forecast. “I said there’s tempest clouds, they’re large tempest clouds, they’re — it’s a hurricane,” helium cautioned. “JPMorgan is bracing ourselves and we’re going to beryllium precise blimpish with our equilibrium sheet.”
Dimon is acrophobic astir respective cardinal issues. Firstly, the Federal Reserve is expected to reverse its exigency bond-buying programs and shrink its equilibrium sheet, and the quantitative tightening (QT) is scheduled to statesman this month.
The JPMorgan brag opined:
We’ve ne'er had QT similar this, truthful you’re looking astatine thing you could beryllium penning past books connected for 50 years.
He explained that cardinal banks “don’t person a prime due to the fact that there’s excessively overmuch liquidity successful the strategy … They person to region immoderate of the liquidity to halt the speculation, trim location prices and worldly similar that.”
Dimon is besides disquieted astir the Russia-Ukraine warfare and its interaction connected commodities, including nutrient and fuel. He warned that lipid could perchance deed $150 to $175 a barrel.
Warning that “wars spell bad” and determination are “unintended consequences,” the enforcement stressed:
We’re not taking the due actions to support Europe from what’s going to hap to lipid successful the abbreviated run.
Last month, Dimon told Bloomberg that the Federal Reserve should person moved sooner to rise involvement rates. He admitted that helium is disquieted astir the Fed starting a recession.
A increasing fig of radical person precocious warned of a recession, including the Big Short capitalist Michael Burry, Allianz’s main economical advisor Mohamed El-Erian, and Tesla CEO Elon Musk.
Blackrock, the world’s largest plus manager with astir $10 trillion nether management, precocious explained: “If they [the Fed] hike involvement rates excessively much, they hazard triggering a recession. If they tighten not enough, the hazard becomes runaway inflation.”
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