JPMorgan Chase CEO Jamie Dimon Says Firm Is Bracing Up for Economic ‘Hurricane’

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by Benjamin Godfrey · 3 min read
JPMorgan Chase CEO Jamie Dimon Says Firm Is Bracing Up for Economic ‘Hurricane’
Photo: Fortune Live Media

Economists from JPMorgan Chase have revised their growth projects for the economy, lowering their forecasts to reflect current realities.

Jamie Dimon, the CEO of American multinational investment bank and financial services holding company, JPMorgan Chase & Co (NYSE: JPM) told investors on Wednesday that the bank is gearing up for what he called an economic ‘Hurricane’ in the near future.

“That hurricane is right out there down the road coming our way,” the JPMorgan Chase & Co chief executive officer said at a conference sponsored by AllianceBernstein Holdings Wednesday. “We don’t know if it’s a minor one or Superstorm Sandy. You better brace yourself.”

Dimon’s comments were hinged on the uncertainties that surround the Russian invasion of Ukraine that has led to a persistent war for more than 3 months today. He also mentioned the fact that tightening monetary policies also contribute to the ‘stormy clouds’ looming over the United States economy.

As an expert in the banking and financial industry, the JPMorgan Chase CEO believes the Federal Reserve’s attempt to control the massive inflation rate appears to be working at the moment.

“Right now it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle it,” Dimon said.

However, the veteran said the bank is preparing for the rainy day by being very conservative with its balance sheet.

“I kind of want to shed non-operating deposits again, which we can do in size, to protect ourselves so we can serve clients in bad times,” he said. “That’s the environment we’re dealing with.”

Amongst the bright clouds that JPMorgan Chase has outlined include the growing job counts and increasing wages, two indicators that were largely absent with the advent of the COVID-19 pandemic back in 2020. JPMorgan has taken quite a beating since the start of the year, and although the rate of fall of its shares is lower than other companies, particularly tech firms, the 18% slump in the Year to Date period is, however, relatively high for the bank.

Economic Growth Projections from JPMorgan Chase

Economists from JPMorgan Chase have revised their growth projects for the economy, lowering their forecasts to reflect current realities.

As reported by Bloomberg, the experts have tapered down the expectations for the growth of the second half of this year to 2.4% from 3%. Additionally, the projections for the first half of 2023 have been slashed to 1.5% from 2.1% and for the second half of 2023 to 1% from 1.4%. The economists cited falling stock prices, higher mortgage rates, and a stronger dollar relative to trading partners as their basis for the renewed projection.

JPMorgan Chase comes off as one of the largest banking institutions in the United States and around the world. Should the bank be expecting a bad economy ahead, then perhaps more insights need to be drawn from the Federal Reserve as it concerns the further interest rate hikes scheduled for the rest of the year.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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