JP Morgan braced for economic ‘hurricane’, says Jamie Dimon
JP Morgan boss Jamie Dimon warned of a coming economic “hurricane” today as he called on the US federal Reserve to implement quantitative tightening and hike interest rates.
Speaking to a conference today, Dimon said there were “storm clouds” gathering and faster action was needed from central bankers in the US to fight the effects of soaring inflation.
“I said there were storm clouds, big storm clouds. It’s a hurricane,” he told the conference.
“Right now it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle it. That hurricane is right out there down the road coming our way. We don’t know if it’s a minor one or Superstorm Sandy. You better brace yourself.”
Dimon said that JP Morgan is being conservative with its balance sheet and preparing to take actions “with all this capital uncertainty.”
“The Fed has to meet this with raising rates and QT. The new part of this isn’t the rising rates, it’s the QT,” he added.