Wall Street titan Jamie Dimon, CEO of JPMorgan Chase, is warning of a looming economic “hurricane” heading our way.
“I said there were storm clouds. But I’m going to change it. It’s a hurricane,” Dimon warned analysts and investors during a financial conference hosted by AllianceBernstein Holdings Wednesday.
“Right now it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle it. That hurricane is right out there down the road coming our way,” he added. “We don’t know if it’s a minor one or Superstorm Sandy.”
It’s a frightening prospect that inflationary fears and the coming recession haven’t even crested yet. It’s equally as frightening that the head of the country’s largest bank is telling us that we’re currently in the “sunny” part of the economic forecast.
“You’d better brace yourself,” Dimon added. “JPMorgan is bracing ourselves and we’re going to be very conservative with our balance sheet.”
— Bloomberg (@business) June 1, 2022
Billionaire CEO Jamie Dimon Warns of Coming Economic Hurricane
There are two main areas that should be of concern, Jamie Dimon warns, that have transformed his economic forecast from ‘storm clouds’ to a ‘hurricane.’
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The first of which is a Federal Reserve implementing so-called quantitative tightening (QT) that, according to Fox News, “will further tighten credit for U.S. households as officials try to tame red-hot inflation.”
“We’ve never had QT like this, so you’re looking at something you could be writing history books on for 50 years,” Dimon said.
“You better brace yourself” he says, to 300 million people who absolutely cannot afford to brace themselves under any circumstances. https://t.co/ytv2S9CzNW
— Craig Harrington (@Craigipedia) June 1, 2022
Rising Gas Prices
The second major concern in Jamie Dimon’s view is inflationary prices caused by soaring gas prices, as he argued that oil “almost has to go up in price” from here.
Gas, of course, has already hit new record highs several times this year.
Dimon believes the Ukraine war and subsequent bans on Russian oil by European Union leaders could mean oil prices of $150 to $175 are likely “in the cards.”
Let’s note Dimon has been far more accurate than any expert in the Biden administration. https://t.co/dih6aKgOjM
— Pradheep J. Shanker (@Neoavatara) June 1, 2022
The Political Insider reported two weeks ago that JPMorgan research was warning of $6/gallon gas prices by the end of summer.
CNN notes that on Wednesday, “gas prices just took another big step in the wrong direction” when they hit yet another record of $4.67/gallon for the national average.
As of Thursday morning, the national average has gone up another 4.4 cents.
Jamie Dimon, the CEO of JPMorgan Chase: pic.twitter.com/rdRhz2cBcH
— President Biden (@POTUS) October 7, 2021
And lest the administration tries to downplay Jamie Dimon’s dire predictions, there was once a time that he was held in such high regard that he was rumored to be under consideration as Treasury Secretary and was described by President Biden as “my old buddy Jamie Dimon.”
Current Treasury Secretary Janet Yellen took some heat this week when she admitted she was wrong about inflationary concerns that she had predicted would be a “small risk.”
“I think I was wrong then about the path that inflation would take,” said U.S. Treasury Secretary Janet Yellen about her past predictions that inflation would be “a small risk” and “manageable.”@Bruce_LeVell reacted on Wednesday’s “National Report.” pic.twitter.com/ynsQH0PKF3
— Newsmax (@newsmax) June 1, 2022
“Well, look, I think I was wrong then about the path that inflation would take,” Yellen said when asked about her comments from last year.
“There have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly that I didn’t — at the time didn’t fully understand,” she added before reassuring, “but we recognize that now.”
They didn’t anticipate inflation. They didn’t anticipate supply chain issues. They didn’t anticipate bare shelves, soaring gas prices, and scarce supplies of baby formula.
You can bet your last dollar they’re not anticipating the coming ‘hurricane’ either. But don’t worry, as Americans are suffering through that storm they’ll be sure to let you know they ‘recognize’ the issue ‘now.’
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