JPMorgan Chase CEO Jamie Dimon says he “shouldn’t ever use the word hurricane” when warning about the U.S. economy. However, he insisted that there are “storm clouds” that “could be a hurricane.”
JPMorgan CEO Jamie Dimon on US Economy
The chief executive of global investment bank JPMorgan Chase, Jamie Dimon, discussed the U.S. economy in an interview with Fox Business Tuesday.
Regarding his previous warning about an incoming economic hurricane that everybody should brace for, Dimon said:
I shouldn’t ever use the word hurricane.
He clarified: “What I said was there were storm clouds which may 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 boss emphasized that he is not predicting a specific scenario, adding that what he is warning about could “be nothing” or “could be bad.” He stated: “I think we should understand that I’m not predicting one or the other, I’m just saying, be a little prepared for both of them.”
Despite the current uncertain economic environment, Dimon is still optimistic about the American consumer. “The consumer is still strong,” he described. “Their balance sheets are in good shape. They’re spending 10% more than pre-Covid. They have more in their checking account companies that are in good shape, and that’s driving a strong economy.”
Regarding the oil crisis, the JPMorgan boss said: “It’s heightened because of Russia, Ukraine, oil, energy, food, quantitative tightening.”
Commenting on the Federal Reserve raising interest rates, the executive opined:
Is it going to be enough to raise rates to 5%? And this is having a huge effect on smaller countries, poor nations, those who are reliant on importing oil and gas.
Those uncertainties “may very well mitigate,” resulting in a “kind of Goldilocks mild recession,” he added. “But they may not,” he also cautioned. “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 could be coming.
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