Skip to content
Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

ECONOMIC “HURRICANE” AHEAD, DIMON SAYS

“I said there are storm clouds, but…it’s a hurricane,” Jamie Dimon, chair and CEO of JPMorgan Chase, the richest U.S. bank, said of the nation’s economic outlook last week at the Bernstein Strategic Decisions Conference.

“Right now…everyone thinks the [U.S. Federal Reserve] can handle this [inflation],” he said, but “that hurricane is coming our way. We just don’t know if it’s a minor one or a Superstorm Sandy.”

Dimon had said in May that a storm was brewing but it might just as easily clear up quickly. His comments were credited with shoring up investors’ confidence and even bumping up his bank’s share price.

Now he has altered his forecast.

“You better brace yourself,” he added.

JPMorgan already has prepared, setting aside $900 million in the year’s first quarter to cover loans that might go bad in the storm ahead, as we reported in “JPMorgan Profits Down 42 Percent on $900-Million Set-Aside” (26 Apr 2022).

Dimon attributes the looming heavy weather to the Fed’s plan to steadily raise interest rates through the rest of the year.

The central bank also has ended its $120-billion monthly bond purchases and is letting current holdings fall out of its $9-trillion portfolio as they mature.

The end of the Fed’s purchases, which began in 2008 as the Great Recession set in, deprives the market of liquidity to which investors have become accustomed. That could make markets more volatile, the Financial Times noted.

William Demchak, a JPMorgan alumnus and now CEO of PNC bank, which holds about $540 billion in assets, offered the conference “no weather forecasts” but agreed that the future is darker than the present.

“I don’t think it’s going to be a hurricane,” he said, but “I don’t see any possible outcome other than a recession.” 

TREND FORECAST: Mr. Dimon’s forecast is old news for Trends Journal subscribers. However, what is essential in his and others’ vocal declarations of economic danger ahead, is that it is coming from the top of the economic pyramid. Therefore, being that they are on the top of the inside of the banking world and know what is actually going on, for Dimon to make such statements should be taken very seriously. 

Simply stated: The Worst is Yet to Come.

Comments are closed.