“Ethis hurricane, which is here and now and is approaching us (…). We don’t know how it will be, so we’d better get ready,” said Jamie Dimon during an investor conference hosted by Alliance Bernstein Holdings today.
“At JP Morgan, we are already gearing up and going to be very conservative in our financial statements,” said Dimon, who expressed his main concerns about inflation and the Federal Reserve’s (Fed) response to fighting it.
Inflation in the US at levels not seen in four decades has led the Fed to decide two successive hikes in its base interest rate since the beginning of the year, already in the range of 0.75% to one percent.
Dimon did not criticize the Fed, on the contrary, he said that “everyone believes that the Fed can handle the situation”, but this did not stop him from identifying “storm clouds” on the horizon.
The banker insisted that “there is too much liquidity in the monetary system” that needs to be cut, and that the Fed and central banks in general should cut it to curb speculation.
He was more pessimistic about the war in Ukraine, which he believes will cost a barrel of oil, which is about $120, to $150 or even $175, and added: “We are not (in the US) taking the right actions to protect Europe from what will happen to oil in the short term.
Despite his predictions, Dimon said there are some signs of optimism, such as consumer strength and confidence, rising wages and plenty of jobs available.
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