I recommend JPMorgan CEO, Jamie DimonInvestors brace for an economic hurricane, with unprecedented challenges rising, including monetary tightening and Russia’s invasion of Ukraine.
Damon said on Wednesday, “The hurricane has taken off and is on its way to us. We do not know whether it is a small storm or a super hurricane like Hurricane Sandy, but it is better to prepare for now,” according to “Bloomberg”, which was seen by Al Arabiya.net.
Dimon’s comments come following he said at an investor meeting for the largest US bank last month that a “storm clouds” loomed over the US economy, but recently revised his forecast, in light of the challenges the Federal Reserve faces as it tries to rein in inflation.
“Right now, it’s going well, and everyone thinks the Fed can handle it,” Dimon said.
Economists at JPMorgan last month lowered their growth forecast for the second half of 2022 to 2.4% from 3%, for the first half of 2023 to 1.5% from 2.1%, and for the second half of 2023 to 1% from 1.4%.
They cited lower stock prices, higher mortgage rates, and a stronger dollar compared to trading partners of the United States.
Dimon confirmed Wednesday that JPMorgan is preparing for this disruption by conservatively on its balance sheet.
“I kind of want to get rid of non-operating deposits once more, which we can do in terms of volume, to protect ourselves so we can serve customers in tough times,” he added.
However, he cited consumer power, rising wages, and a glut of jobs as luminous signs in the economy.