Jamie Dimon warns of a possible economic “hurricane”

New York (CNN Business) – Jamie Dimon is no meteorologist, but JPMorgan Chase CEO predicts an economic “hurricane” caused by the war in Ukraine, increasing inflation pressures, and raising interest rates by the Federal Reserve.

“Things are kind of sunny right now, it’s going well,” Dimon said at a conference in Bernstein. “Everyone thinks the Fed can handle this. This hurricane is coming on us.”

“We don’t know if it’s a small storm or Sandy. You’d better be prepared,” Dimon said, adding that JPMorgan Chase is preparing for a “unhealthy environment” and “bad outcomes.”

Dimon said the economy was “distorted” by inflation. He is also concerned that the Fed has begun emptying its bond portfolio, a process known as quantitative tightening, at the same time it is raising interest rates. This is something the market isn’t ready for, Damon said, adding that people “will write about it [esto] In the history books for 50 years.

But the Federal Reserve is in trouble. Dimon said the central bank should raise interest rates due to rising house prices and other inflationary pressures. He stressed that he still believes that the US banking system is in a “good shape” and can withstand these challenges.

Damon also said that JPMorgan Chase will do everything in its power to attract talent to stay ahead of the financial world. The bank’s CEO said to be “religious” about paying well to keep its best workers.

Dimon’s more cautious outlook comes just days after he appeared slightly more optimistic about what awaits markets and the economy.

Speaking at a meeting of analysts in late May, Dimon said “big storm clouds” were looming for the economy, but hoped they would “dissipate.”

“If it was a hurricane, I’ll tell you,” Dimon said, adding that current conditions are also not like the “tsunami” that banks faced in 2007 and 2008, when the mortgage market collapsed and many large financial institutions were gone. under.

Damon may not expect a tsunami yet. But a hurricane is bad enough, and certainly more damaging than any storm. Dimon said he was also concerned about the conflict in Ukraine and its impact on oil prices, predicting on Wednesday that crude oil prices could rise as high as $150 to $175 a barrel.

“Wars go wrong. They fail. They have unexpected consequences,” he said, adding that this conflict would continue to destabilize commodity markets around the world, affecting oil, gas and wheat prices.

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