Jamie Dimon, CEO of JPMorgan Chase & Co., warned investors to brace themselves for an economic hurricane as an unprecedented combination of the Russian incision of Ukraine and tightening monetary policy has made the economy struggle.
More on the economic warning
At an Alliance Bernstein Holdings sponsored conference on Wednesday, Dimon said that the hurricane is right there on the road coming at investors’ way. He said he is unsure whether it is a Superstorm Sandy or a minor one, but it is better to be ready for it.
As per Bloomberg News, JPMorgan’s investor day saw Dimon addressing investors on the possible storm hovering over the U.S. Economy. He said that given the challenges faced by Federal Reserve to control inflation, he had updated his forecast.
Shares of JPMorgan fell 1.8% to $129.81 in New York after Dimon remarked on the conditions extending the decline in the stock to 18%.
Economists at JPMorgan lowered the growth outlook last month from 3% to 2.4% for the second half of 2022, from 2.1% to 1.5% for the first half of 2023, and from 1.4% to 1% for the second half of 2023. They have cited higher mortgage rates, falling stock prices, and stronger dollars relative to partners who are trading.
On Wednesday, Dimon said that JPMorgan is preparing itself for the turbulence by ensuring a conservative Balance Sheet. He wants to remove the non-operating deposits to serve the clients better during bad times. However, he cited the strength of the consumer, plenty of jobs, and rising wages as bright clouds in the economy.
Earlier on Wednesday, Charlie Scharf, Chief Executive officer of Wells Fargo & Co., said that he expects the loan growth pace to slow down after rising in the first quarter.
