The chairman and CEO of JPMorgan Chase, Jamie Dimon, has cautioned that with the numerous hazards present, it is “a huge mistake” to believe that the American economy will continue to grow for “years.” “I just think people make a mistake by looking at real-time numbers and not looking at the future,” the CEO insisted. Quantitative tightening is a feature of the future. All around the world, we have been wasting money like inebriated sailors.
Jamie Dimon’s Economic Warning
Jamie Dimon, CEO of JPMorgan Chase, issued a warning about the direction the American economy is taking on Monday at the Barclays 21st Annual Global Financial Services Conference in New York.
“I just think people make the mistake of looking at real-time numbers and not looking at the future,” the CEO said. Quantitative tightening is a feature of the future. We have been spending money like inebriated sailors all around the world while the war in Ukraine continues. Dimon stressed:
It would be a serious error to assume that because the consumer is strong today, the economy will continue to grow for many years.
“If and when you experience a recession—which you will eventually—you’ll have a typical credit cycle, which is, in my opinion, very foreseeable. During a typical credit cycle, something always performs worse than usual, according to him.
There is a lot of fiscal stimulus happening right now, according to the JPMorgan CEO. And the big COVID one is still moving through. The biggest QE is still in effect. So that’s incredibly strong, and we’re still surviving on that. Naturally, that is what motivates everything, including business outcomes.
Dimon continued, saying that “businesses feel pretty good because they look at their current results” and “they’re not so bad.” But he issued a warning:
However, those things change. Furthermore, we are unsure of the entire impact of all of these factors 12 or 18 months from now.
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