“It’s a little sunny right now, things are going well. Everyone thinks the Fed can handle it,” Dimon told a conference in Bernstein. “This hurricane is right there, down the road coming to us.” “We just don’t know if it’s insignificant or Sandy’s superstorm. Better prepare, “Dimon said, adding that JPMorgan Chase (JPM) is preparing for” unfavorable environments “and” poor results. ” Dimon said the economy was “distorted” by inflation. He is also worried that the Fed is starting to develop its bond portfolio, a process known as quantitative tightening, while raising interest rates. This is something the market is not prepared for, Damon said, adding that people will write [this] in 50-year history textbooks, “But the Fed is in trouble. Dimon said the central bank needs to raise interest rates due to rising house prices and other inflationary pressures. He stressed that he still believes the US banking system is in “great shape” and can withstand these challenges.
Dimon also said JPMorgan Chase will do its best to attract talent to stay on top of the financial world. The chief executive said the bank would be “religious” about payments well to keep its best workers.
Dimon’s more cautious outlook comes just days after he sounded a little more optimistic about what’s next for markets and the economy.
Speaking to analysts in late May, Damon said there were “big storm clouds” on the economy’s horizon, but expressed hope that they could “dissipate”.
“If it was a hurricane, I would tell you,” Dimon told analysts, adding that the current situation is not like the “tsunami” that banks faced in 2007 and 2008, when the mortgage market melted and several large financial institutions collapsed.
Damon may not be predicting a tsunami yet. But a hurricane is bad enough and certainly more harmful than an ordinary storm. Damon said he was also worried about the conflict in Ukraine and the impact it would have on oil prices, predicting on Wednesday that it is planned that crude oil prices will eventually jump to $ 150 to $ 175 a barrel.
“Wars are going badly. They are going south. They have unintended consequences,” he said, adding that the conflict would continue to fuel raw material markets around the world, affecting oil, gas and wheat prices.
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