![\"JPMorgan](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2022\/06\/jamie-dimon-hurricane.jpg\")
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JPMorgan CEO Jamie Dimon has warned that an economic \u201churricane\u201d is coming. \u201cYou better brace yourself,\u201d he advised. \u201cWe just don\u2019t know if it\u2019s a minor one or Superstorm Sandy.\u201d<\/strong><\/p>\n The CEO of JPMorgan & Chase, Jamie Dimon, warned about an incoming economic hurricane Wednesday at a financial conference sponsored by Alliancebernstein Holdings.<\/p>\n \u201cIt\u2019s a hurricane,\u201d Dimon exclaimed. While noting that \u201cRight now it\u2019s kind of sunny, things are doing fine, everyone thinks the Fed can handle it,\u201d the JPMorgan executive stressed:<\/p>\n That hurricane is right out there down the road coming our way. We just don\u2019t know if it\u2019s a minor one or Superstorm Sandy \u2026 You better brace yourself.<\/p>\n<\/blockquote>\n The JPMorgan chief said in May that there were \u201cstorm clouds.\u201d However, he has now revised his forecast. \u201cI said there\u2019s storm clouds, they\u2019re big storm clouds, they\u2019re \u2014 it\u2019s a hurricane,\u201d he cautioned. \u201cJPMorgan is bracing ourselves and we\u2019re going to be very conservative with our balance sheet.\u201d<\/p>\n Dimon is concerned about several key issues. Firstly, the Federal Reserve is expected to reverse its emergency bond-buying programs and shrink its balance sheet, and the quantitative tightening (QT) is scheduled to begin this month.<\/p>\n The JPMorgan boss opined:<\/p>\n We\u2019ve never had QT like this, so you\u2019re looking at something you could be writing history books on for 50 years.<\/p>\n<\/blockquote>\n He explained that central banks \u201cdon\u2019t have a choice because there\u2019s too much liquidity in the system \u2026 They have to remove some of the liquidity to stop the speculation, reduce home prices and stuff like that.\u201d<\/p>\n Dimon is also worried about the Russia-Ukraine war and its impact on commodities, including food and fuel. He warned that oil could potentially hit $150 to $175 a barrel.<\/p>\n Warning that \u201cwars go bad\u201d and there are \u201cunintended consequences,\u201d the executive stressed:<\/p>\n We\u2019re not taking the proper actions to protect Europe from what\u2019s going to happen to oil in the short run.<\/p>\n<\/blockquote>\n Last month, Dimon told Bloomberg that the Federal Reserve should have moved sooner to raise interest rates. He admitted that he is worried about the Fed starting a recession.<\/p>\n A growing number of people have recently warned of a recession, including the Big Short investor Michael Burry<\/a>, Allianz\u2019s chief economic advisor Mohamed El-Erian<\/a>, and Tesla CEO Elon Musk<\/a>.<\/p>\n Blackrock, the world\u2019s largest asset manager with nearly $10 trillion under management, recently explained: \u201cIf they [the Fed] hike interest rates too much, they risk triggering a recession. If they tighten not enough, the risk becomes runaway inflation.\u201d<\/p>\nJamie Dimon on the U.S. Economy and QT<\/h2>\n
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