careful JPMorgan CEO Jamie DimonThe growing risk of the US economy falling accidentally into a recession, while the Federal Reserve battles inflation.
The CEO of the largest US bank in terms of the volume of assets said that economic growth will continue at least during the second and third quarters of this year, supported by consumer demand and companies rushing to pay their debts on time.
However, he warned of a blurry vision 6 months from now, as he told analysts: “You have two other big variables that everyone is aware of,” referring to inflation and quantitative tightening, or reversal of the federal bond purchase policies, according to “CNBC” and seen by “Al Arabiya.” net”.
“Some of us may not have seen this before, but there are simply storm clouds on the horizon that may or may not disappear,” Damon added.
Dimon’s observations show how quickly major events can change the economic landscape.
A year ago, Dimon said, the United States had had an economic “moderate moment” of high growth coupled with manageable inflation that might run into 2023, but aggressively high inflation and a host of potential impacts from Russia’s invasion of Ukraine have cast a shadow over that. Picture.
The risks emerged more clearly, following JPMorgan revealed a 42 percent drop in profits from the previous year due to increased bad loan costs and market turmoil caused by the Ukraine war.
JPMorgan executives made it clear that they did not expect a recession, but this high inflation, exacerbated by the effects of the Ukraine war and the Corona epidemic, as well as the actions of the Federal Reserve made it more likely than before.
“The variables are very strong and they’re going to explode sometime, maybe sometime next year, and nobody really knows what’s going to happen, so I don’t expect a recession, but is it possible? Absolutely,” Damon said.
