JPMorgan Chase CEO Jamie Dimon says he “should never use the word hurricane” when warning about the US economy. However, he insisted that there are “storm clouds” that “could be a hurricane.”
JPMorgan CEO Jamie Dimon on the US economy
The chief executive of global investment bank JPMorgan Chase, Jamie Dimon, discussed the US economy in an interview with Fox Business on Tuesday.
Regarding his earlier warning of an impending economic hurricane that everyone should prepare for, Dimon said:
You should never use the word hurricane.
He clarified: “What I said was that there were storm clouds that can mitigate, and people said, ‘Oh, he doesn’t think it’s a big deal.’ So I said, ‘No, those storm clouds could be a hurricane.’
The JPMorgan chief stressed that he is not forecasting a specific scenario, adding that what he is warning could “be nothing” or “could be bad.” He said: “I think we need to understand that I’m not predicting one or the other, I’m just saying, be a little bit prepared for both.”
Despite the current uncertain economic environment, Dimon remains optimistic about the American consumer. “The consumer remains strong,” he described. “Their balances of him are in good shape. They are spending 10% more than before Covid. Companies that are in good shape have more in their checking account and that is driving a strong economy.”
Regarding the oil crisis, the JPMorgan boss said: “It has escalated because of Russia, Ukraine, oil, energy, food, quantitative tightening.”
Commenting on the Federal Reserve’s interest rate hike, the executive opined:
Will raising rates to 5% be enough? And this is having a huge effect on the smaller countries, the poor nations, those that depend on imported oil and gas.
Those uncertainties “may very well be mitigated”, resulting in a “sort of mild Goldilocks recession”, he added. “But it may not,” she also warned. “So, I’m still on the cautious side of this one.” In October last year, Dimon said a recession could hit in six months. In August, he said something worse than a recession was coming.
What do you think of the statements by the CEO of JPMorgan Chase, Jamie Dimon? Let us know in the comments section.
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