JPMorgan’s Jamie Dimon has said the company is bracing itself for an economic hurricane.
The CEO has warned investors to prepare for an economic “hurricane” as the economy struggles against an unprecedented combination of challenges that include a tightening monetary policy and Russia’s invasion of Ukraine.
“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 this week. “We don’t know if it’s a minor one or Superstorm Sandy. You better brace yourself.”
It was at JPMorgan’s investor day in May that Dimon said there were “storm clouds” looming over the US econom. “Right now it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle it,” Dimon said.
Last month JPMorgan economists last month lowered their growth outlook for the second half of 2022 to a 2.4% rate from 3%, for the first half of 2023 to 1.5% from 2.1% and for the second half of 2023 to 1% from 1.4%.
The economists had cited falling stock prices, higher mortgage rates and a stronger dollar relative to trading partners.
“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,” said Dimon on Wednesday. “That’s the environment we’re dealing with.”
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.