Posted in: 02/06/2022 – 14:32
Jamie Dimon, CEO of JPMorgan Chase, warned that it is preparing the largest US bank for a looming economic hurricane, and advised investors to do the same.
“I have indicated before that there are storm clouds coming towards us … but now I say it is a hurricane,” Dimon added on Wednesday, June 1, 2022, during a financial conference in New York. “While conditions look good at the moment, no one knows whether the hurricane will be light or very raging,” he added.
Dimon hinted that the Fed would no longer be able to control things in the future, with inflation continuing to rise.
The JPMorgan chairman explained that two factors drive him to fear what’s ahead: the first is that the Fed will reverse its emergency bond-buying programs and shrink its balance sheet.
The other factor is the Ukrainian war and its impact on commodities, including food and fuel. Dimon said that oil prices will rise due to the turmoil caused by the worst European conflict since World War II, and it is likely that it will reach 150 or 175 dollars per barrel.