Jamie Dimon, chief executive officer (CEO) of JPMorgan Chase, one of the major US banks, warned investors to prepare for an economic “whirlwind”, noting that the economy is facing an unprecedented series of challenges, including tight monetary policy and the war in Ukraine.
At a conference, Dimon made evaluations about the economic outlook. Explaining that the economy is facing an unprecedented series of challenges, including tight monetary policy and the war in Ukraine, Dimon likened these difficulties to a “hurricane”.
Dimon said, “It’s a bit sunny right now, things are going well. Everyone thinks the U.S. Federal Reserve (Fed) can deal with this. That hurricane is right down the road. We don’t know if it’s just a small storm or Hurricane Sandy. You’d better prepare yourself.”
Dimon stated that JPMorgan Chase is preparing itself for this and that the bank will be very conservative about its balance sheet.
Dimon said that the Fed should raise interest rates due to inflationary pressures and that he thinks the US banking system can withstand these difficulties.
Emphasizing that the Fed has to tighten quantitatively, Dimon said, “They have no other choice, because there is too much liquidity in the system.”
