JP Morgan Chase CEO Jamie Dimon has warned there’s an economic “hurricane” heading to the country and advised Americans to “brace yourself” for it.
“I said there were storm clouds but I’m going to change it. It’s a hurricane,” Dimon said, referencing comments he made in early May about the economic forecast in the U.S. He upgraded his prediction due to continued rising inflation, the war in Ukraine and the Federal Reserve’s hawkish position on continuing to raise interest rates, according to a Fox Business report.
“Right now it’s kind of sunny. Things are doing fine. Everyone thinks the Fed can handle this. That hurricane is right out there down the road coming our way,” Dimon said. “We just don’t know if it’s a minor one or Superstorm Sandy or Andrew or something like that. You better brace yourself.”
Dimon made the comments during a conference hosted by AllianceBernstein Holdings on Wednesday, June 1.
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While the Federal Reserve works to lighten its balance sheet, Dimon noted America “has never had QT [Quantitative tightening] like this, so you’re looking at something you could be writing history books on for 50 years.”
The Russian invasion of Ukraine is also part of the reason Dimon upgraded his predictions.
“Wars go bad. They go south. They have unintended consequences,” Dimon said noting the conflict will continue to upend the cost of gas and food.
PHOTO: A City of Miami police officer talks with a homeless person, prior to a cleaning of the street, Tuesday, Nov. 16, 2021, in Miami. (AP Photo/Lynne Sladky)