© Archyde.com. JP Morgan CEO “Prepare for an economic hurricane… the worst possible shock” warns
Jamie Dimon, CEO of JPMorgan Chase, the largest U.S. bank, dubbed the ’emperor of Wall Street’, has warned against an ‘economic hurricane’.
According to CNBC broadcaster in the US on the 2nd (Korean time), Dimon said this at a financial conference held in New York, USA on the same day. Following the announcement that a ‘dark cloud’ was coming at the JP Morgan investor conference held for the first time in two years last week, a ‘hurricane’ raised the level of risk.
It is interpreted as diagnosing that economic uncertainty has increased due to various circumstances such as the US Federal Reserve’s (Fed) shrinking balance sheet and the Russia-Ukraine war. The Fed began quantitative tightening (QT) this month, reducing its balance sheet by flowing $47.5 billion of assets in Treasury bonds and mortgage-backed securities (MBS) into the market rather than reinvesting it this month. After three months, the scale of reduction will be raised to $95 billion in stages.
“The worst economic shock could come,” Dimon said.
“J.P. Morgan is already preparing and will take a very conservative approach to our balance sheet,” he said.
Dimon also pointed to the impact of the prolonged Russia-Ukraine war on the commodity market. “Oil prices are definitely going to go up,” he said, predicting that there is a possibility that the price could go up to $150-175 a barrel.