Jamie Dimon, the CEO of JPMorgan Chase and Co., has predicted that an economic "storm" is on the way.
"Make the greatest preparations you can," he advised, "since we have no idea whether it will be a modest storm or Super typhoon Sandy."
Jamie Dimon, the CEO of JPMorgan Chase, warned of an impending economic storm during a finance conference organized by Alliancebernstein Holdings on Wednesday.
Dimon said, "It's a storm!" Despite the fact that "right now it's kind of sunny, things are OK, and everyone thinks the Fed can manage it," the JPMorgan executive emphasized that the storm is just out there down the road coming our way. We just don't know if it'll be a modest storm or if it'll be Superstorm Sandy... You'd better get ready. Dimon is worried about a number of important issues. To begin with, the Federal Reserve is supposed to end its emergency bond-buying operations and reduce its balance sheet, with quantitative tightening (QT) set to begin this month.
We've never experienced QT like this, so you're looking at something that might be written about in history books for the next 50 years, according to the JPMorgan CEO.
Dimon is particularly concerned about the Russia-Ukraine conflict and how it would affect commodities such as food and petroleum. He predicted that oil may approach $150 to $175 per barrel.
"We're not taking the right steps to shield Europe from what will happen to oil in the short run," the CEO said, emphasizing that "wars go badly" and have "unexpected effects."
Dimon told that the Federal Reserve should have raised interest rates sooner. He admits to being concerned about the Fed kicking off a recession.
A rising number of people, including Big Short investor Michael Burry, Allianz's senior economic advisor Mohamed El-Erian, and Tesla CEO Elon Musk, have recently warned of a recession.
Blackrock, the world’s largest asset manager with nearly $10 trillion under management, recently explained: “The Fed risks precipitating a recession if it increases interest rates too quickly. And if they don’t restrict enough, the risk of runaway inflation arises.”
