Jamie Dimon, CEO of JPMorgan Chase, said that “the word hurricane should never be used” when warning about the US economy. However, he insisted that there are “storm clouds” that “could become hurricanes.”
JPMorgan CEO Jamie Dimon on the U.S. economy
Jamie Dimon, CEO of global investment bank JPMorgan Chase, discussed the U.S. economy in an interview with Fox Business on Tuesday.
On his previous warnings about the coming economic hurricane that everyone should be prepared for, Dimon said.
The word hurricane should never be used.
and made it clear.” What I said was that there were storm clouds that might be mitigated.” People said, “Oh, he thinks it’s not a big deal; it’s not a big deal. So I said, ‘No, that storm cloud could become a hurricane.'”
The JPMorgan boss stressed that he was not predicting any particular scenario, adding that what he was warning about “could be nothing” or “could be bad.” He stated, ” I think you should understand that I am not predicting one or the other, I am just saying, prepare a little for both of them.”
Despite the current uncertain economic environment, Dimon is optimistic about the American consumer.” Consumers are still strong,” he explained. ‘Their balance sheets are in good shape. Consumers’ balance sheets are in good shape. They have a lot of money in checking and savings companies that are in good shape, and that is driving a strong economy.”
On the oil crisis, the JP Morgan boss said.” Russia, Ukraine, oil, energy, food, are rising because of quantitative tightening.”
On the Federal Reserve raising interest rates, the executive opined.
Is it enough to raise interest rates to 5%? And this has a huge impact on small countries, poor countries, countries that rely on oil and gas imports.
These uncertainties “may very well ease” and lead to “a kind of Goldilocks mild recession,” he added. He also warned, “But maybe not.” So I’m still cautious on this one.” Last October, Dimon said a recession could hit within six months; in August, he said something worse than a recession could be coming.
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