Jamie Dimon, chairman and CEO of JPMorgan Chase, has warned that it is “a huge mistake” to think that the U.S. economy will boom “for years” given that there are so many risks out there. The executive stressed: “I just think people make a mistake to look at real-time numbers and not look at the future. And the future has quantitative tightening. We’ve been spending money like drunken sailors around the world.”
Jamie Dimon’s Economic Warning
JPMorgan Chase CEO Jamie Dimon warned about where the U.S. economy is headed at the Barclays 21st Annual Global Financial Services Conference in New York on Monday.
The executive cautioned: “I just think people make a mistake to look at real-time numbers and not look at the future. And the future has quantitative tightening. We’ve been spending money like drunken sailors around the world, this war in Ukraine is still going on.” Dimon emphasized:
To say the consumer is strong today, meaning you are going to have a booming environment for years, is a huge mistake.
“If and when you have a recession, which you’re eventually going to have, you’ll have a normal credit cycle, which I think is quite predictable. In a normal credit cycle, something always does worse than normal,” he described.
The JPMorgan boss opined: “There’s a lot of fiscal stimulus taking place out there. And the large one from Covid is still running through. The largest QE is still running through. So we’re still living on that, and that’s really strong. And of course, that drives everything, including business results.”
Dimon further explained that “businesses feel pretty good because they look at their current results” and see that “they’re not so bad.” However, he cautioned:
But those things change. And we don’t know what the full effect of all these things are going to be 12 or 18 months from now.
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