Jamie Dimon warns 'all these very powerful forces' will impact U.S. economy in 2024 and 2025
Jamie Dimon warns 'all these very powerful forces' will impact U.S. economy in 2024 and 2025

JPMorgan Chase CEO Jamie Dimon mentioned he stays cautious on the U.S. economy over the subsequent two years due to a mixture of monetary and geopolitical dangers.

“You have all these very powerful forces which are going to be affecting us in ’24 and ’25,” Dimon advised Andrew Ross Sorkin Wednesday in a CNBC interview on the World Economic Forum in Davos.

“Ukraine, the terrorist exercise in Israel [and] the Red Sea, quantitative tightening, which I nonetheless query if we perceive precisely how that works,” Dimon mentioned. Quantitative tightening refers to strikes by the Federal Reserve to cut back its steadiness sheet and rein in earlier efforts together with bond-purchasing packages.

Dimon has advocated warning over the previous few years, regardless of document earnings at JPMorgan, the nation’s largest financial institution, and a U.S. economy that has defied expectations. Despite the corrosive impact of inflation, the American shopper has largely remained wholesome due to good employment ranges and pandemic-era financial savings.

In Dimon’s view, the comparatively buoyant inventory market of latest months has lulled traders on the potential dangers forward. The S&P 500 market index rose 19% in the previous yr and is not removed from peak ranges.  

“I feel it is a mistake to imagine that the whole lot’s hunky dory,” Dimon mentioned. “When inventory markets are up, it is sort of like this little drug all of us really feel prefer it’s simply nice. But keep in mind, we have had a lot fiscal financial stimulation, so I’m a bit extra on the cautious facet.”

Goldman Sachs CEO David Solomon: 'Hard for me' to see the market's view of seven rate cuts in 2024

Goldman Sachs CEO David Solomon mentioned Wednesday that whereas the market setting excluding geopolitical points “feels higher as we speak” than a yr in the past, he was involved about hovering U.S. debt ranges.

“I’m very involved concerning the rising debt,” Solomon mentioned. “It’s a giant threat situation that we will need to cope with and reckon with, it simply won’t occur in the subsequent six months.”

Dimon is not any stranger to dire predictions: In 2022, he warned traders of an financial “hurricane” forward due to quantitative tightening and the Ukraine battle.

In Wednesday’s wide-ranging interview, Dimon mentioned his views on Ukraine, former President Donald Trump, immigration, business actual property and bitcoin.

“We have to show the American public that that is about freedom and democracy for the free world, and that is why the battle is being fought,” Dimon mentioned concerning the Ukraine battle.

Read extra: Jamie Dimon says ‘brace yourself’ for an economic hurricane caused by the Fed and Ukraine war

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