JPMorgan CEO Jamie Dimon warns of upcoming economic hurricane – says ‘Better prepare’ – Economy Bitcoin news

JPMorgan CEO Jamie Dimon warns of upcoming economic hurricane – says ‘Better prepare’ – Economy Bitcoin news

JPMorgan CEO Jamie Dimon warned that an economic “hurricane” was coming. “Prepare better,” he advised. “We just don’t know if it’s Sandy Minor or Superstorm.”

Jamie Dimon on the American economy and QT

JPMorgan & Chase CEO Jamie Dimon warned of an upcoming economic hurricane on Wednesday at a financial conference sponsored by Alliancebernstein Holdings.

“It’s a hurricane,” Dimon exclaimed. Noting that “It’s a little sunny right now, things are going well, everyone thinks the Fed can handle it,” the JPMorgan CEO said:

That hurricane is right there down the road and it’s coming at us. We just don’t know if it’s a minor or a super-storm Sandy… You better get ready.

The head of JPMorgan said in May that there were “storm clouds”. However, he has now revised his forecast. “I said there are storm clouds, they are big storm clouds, they are – it’s a hurricane,” he warned. “JPMorgan is preparing and we will be very conservative with our balance sheet.”

Dimon is concerned about several key issues. First, the Federal Reserve is expected to cancel its urgent bond-buying programs and reduce its balance sheet, and a quantitative tightening (QT) is set to begin this month.

The head of JPMorgan considers:

We’ve never had a QT like this, so you’re looking at something you could write history books about 50 years ago.

He explained that “central banks have no choice because there is too much liquidity in the system … They have to remove some of the liquidity to stop speculation, reduce real estate prices and the like.”

Dimon is also worried about the war between Russia and Ukraine and its impact on goods, including food and fuel. He warned that oil could potentially reach $ 150 to $ 175 a barrel.

Warning that “wars are going badly” and that there are “unintended consequences”, the executive stressed:

We are not taking appropriate action to protect Europe from what will happen to oil in the short term.

Last month, Dimon told Bloomberg that the Federal Reserve should have raised interest rates sooner. He admitted that he was worried that the Fed would start a recession.

An increasing number of people have recently warned of a recession, including the Big Short investor Michael BurryAllianz’s chief economic adviser Mohamed El-Erianand CEO of Tesla Elon Musk.

Blackrock, the world’s largest asset manager with nearly $ 10 trillion under management, recently explained: “If [the Fed] they raise interest rates too much, they risk causing a recession. If they are not tightened enough, the risk becomes rapid inflation. “

What do you think of JPMorgan CEO Jamie Dimon’s warning? Let us know in the comments section below.

JPMorgan CEO Jamie Dimon warns of upcoming economic hurricane – says ‘Better prepare’ – Economy Bitcoin news

Kevin Helms

A student of Austrian economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in the security of Bitcoin, open source systems, network effects and the crossroads between economics and cryptography.

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