This was stated by the chief US banker on Wednesday at a financial conference in New York. According to the media and services company Bloomberg, it advises investors to be careful in the coming period. Previously, Dimon spoke of “dark clouds” over the US economy, but this week he revised that view and spoke of an “economic hurricane.”
“No one knows if it’s a minor hurricane or a super storm Sandy,” Dimon told an audience of financial professionals and investors. “You’d better prepare yourself. JP Morgan is preparing itself and will keep a close eye on the portfolio for the foreseeable future.”
Damon is primarily concerned with two factors. For example, there is uncertainty caused by the war in Ukraine. Nobody knows how long it will last and what the outcome will be. But at the moment, there is no indication that the war will end soon. The senior banker fears the impact of the war on the prices and availability of raw materials, including grain, oil and gas.
The second factor is the US central bank raising interest rates. The Federal Reserve is raising interest rates due to rising inflation in the US. It also showed last week that US job growth in May was higher than economists had expected. A strong labor market provides additional scope to raise interest rates more quickly. According to Dimon, central banks have no choice but to raise interest rates, but he also fears that doing so could lead to a recession.
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