JPMorgan Chase CEO, Jamie Dimon, has warned of an impending economic “hurricane” and advised those listening to brace up.
Dimon made the comment while speaking at a financial conference sponsored by AllianceBernstein in New York.
The JPMorgan Chase CEO highlighted two issues that he is concerned about: the Russia-Ukraine conflict and how it is affecting growing fuel and food costs, and the Federal Reserve’s efforts to combat inflation by raising interest rates and shrinking its balance sheet.
What Dimon is saying
“It’s a hurricane. Right now, it’s kind of sunny, things are doing fine. Everyone thinks the Fed can handle this,” Jamie Dimon said during a financial conference.
“That hurricane is right out there down the road, coming our way. We just don’t know if it’s a minor one or Superstorm Sandy or Andrew or something like that, and you better brace yourself,” he added.
The Fed’s interest rate hikes, according to Dimon, could backfire and lead to a recession. He encouraged the Federal Reserve to take decisive action to prevent the world’s largest economy from entering a recession.
He also stated that the United States should do more to defend the European economy from the conflict over Russia’s oil and gas supplies.
“We’re not taking the proper actions to protect Europe from what’s going to happen to oil in the short run,” he added.
What you should know
- The Federal Reserve is under pressure to make a substantial dent in an inflation rate that is more than three times its target of 2%, causing a rise in the cost of living for Americans.
- Hence, market participants are also preparing a coordinated pullback from key financial markets in the first-ever wave of global quantitative tightening, which is expected to restrict credit and add stress to an already-weak global economy.
- Stocks have been hammered since late last year, starting with high-flying tech companies, as investors brace for the end of the Federal Reserve’s cheap money era.
- Inflation is reaching multi-decade highs, aggravated by supply chain disruptions and the coronavirus epidemic, sowing fears that the Fed will unwittingly tip the economy into recession as it fights price rises.
- Nigeria has joined other major central banks in interest rate hikes to fight against inflation. However, experts have questioned if a hawkish stance from Nigeria would be effective enough to subside inflationary pressures.
It seem like that economy storm hit us long time ago but now you notice it just struggling to hold on all our life been about now everybody feel Rich people too & we are bracing ourselves and praying for a fast recovery