Unprecedented economic challenges, especially after Russia's invasion of Ukraine and the tightening of monetary policy, have led to warnings of an impending economic hurricane
According to Arabiya Net, the CEO of JPMorgan Bank warned, saying: The hurricane is on its way to us. We do not know whether it is a small storm or a super hurricane like Hurricane Sandy, but it is better to prepare now.
Dimon's comments come, after he said at the investor meeting of the largest US bank last month: a looming storm clouded the US economy, but he recently revised his expectations, in light of the challenges faced by the Federal Reserve as it tries to rein in inflation. p>
"Right now, it's going well, and everyone thinks the Fed can handle it," Dimon said.
Economists at JPMorgan last month cut their growth forecast for the second half of 2022 to 2.4% 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%.
They cited lower stock prices, higher mortgage rates, and a higher dollar compared to trading partners of the United States.
Dimon confirmed Wednesday that JPMorgan is preparing for this turmoil by conservatively on its balance sheet.
He added, "I kind of want to get rid of non-operating deposits again, which we can do in terms of volume, to protect ourselves so we can serve customers in tough times."
However, he cited consumer power, rising wages, and a glut of jobs as luminous signs in the economy.
