Jamie Dimon, chief executive of JPMorgan, said in an exclusive interview with Bloomberg that inflation is hitting the global economy and the Fed should raise rates sooner, adding that the Ukraine war is a bigger risk than Fed tightening.
The Federal Reserve (Fed) ended its two-day Federal Open Market Committee (FOMC) interest rate meeting on Wednesday (4th). , and will begin to shrink the table in June.
Dimon said before the rate decision that the Fed was a little late and that the sooner they did, the better.
Although there is a one-in-three chance of a soft landing and a one-in-three chance of a mild recession from the Fed’s actions, Dimon does not see a recession in the U.S. economy, which is very strong.
Dimon’s views are in line with U.S. Treasury Secretary Yellen, who expects the U.S. to achieve solid growth in the coming year, and the economy may achieve a soft landing as the Federal Reserve takes steps to reduce inflation. But she noted that the Fed needs both skill and luck, but it is possible.
Dimon also offered insights on the global economy on Wednesday, mentioning that a bigger risk than quantitative tightening (QT) is the Ukrainian-Russian war, a crisis that might last for years, and economic sanctions on Russia that are moving as expected function, although they are only one tool in the toolbox.
Dimon called on Western governments to do what they can to meet Europe’s energy needs. He said if the war worsened, he thought Europe would fall into recession. Global energy is unstable, and if oil prices rise to $185 a barrel, it will be a big problem for people, and the US should immediately do everything it can to extract more oil and gas.
As Russia’s Cold War with the West is back, Dimon believes that the U.S. government should pay more attention to national security, which will always be paramount, including securing energy and food resources.
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