Hurricane Watch

Jamie Dimon says brace for U.S. economic ‘hurricane’ due to inflation

Wed, June 1, 202

By Elizabeth Dilts Marshall and Niket Nishant

(Reuters) - Jamie Dimon, Chairman and Chief Executive of JPMorgan Chase & Co described the challenges facing the U.S. economy akin to an “hurricane” down the road and urged the Federal Reserve to take forceful measures to avoid tipping the world’s biggest economy into a recession.

Dimon’s comments come a day after President Joe Biden met with Federal Reserve Chair Jerome Powell to discuss inflation, which is hovering at 40-year highs.

"It’s a hurricane," Dimon told a banking conference, adding that the current situation is unprecedented. “Right now, it’s kind of sunny, things are doing fine. Everyone thinks the Fed can handle this. That hurricane is right out there down the road coming our way. We just don’t know if it’s a minor one or Superstorm Sandy,” he added.

The Fed is under pressure to decisively make a dent in an inflation rate that is running at more than three times its 2% goal and has caused a jump in the cost of living for Americans. It faces a difficult task in dampening demand enough to curb inflation while not causing a recession.

“The Fed has to meet this now with raising rates and QT (quantitative tightening). In my view, they have to do QT. They do not have a choice because there’s so much liquidity in the system,” Dimon said.

Major central banks, already plotting interest rate hikes in a fight against inflation, are also preparing a common pullback from key financial markets in a first-ever round of global quantitative tightening expected to restrict credit and add stress to an already-slowing world economy.

“You gotta brace yourself. JPMorgan is bracing ourselves, and we’re going to be very conservative in our balance sheet,” Dimon added.

https://finance.yahoo.com/news/fed-struggle-achieve-soft-lan…

Side note: In a 2012 Charlie Rose interview, Mr. Buffett said he thought Jamie Dimon would have been the best person to succeed Treasury Secretary Tim Geithner.

"“I think Jamie Dimon actually would be, I think he’d be terrific, because if we did run into problems in markets, I think he would actually be the best person you could have,” Buffett said on PBS’s “Charlie Rose.” “And I think the world leaders would have confidence in him.”

https://www.politico.com/story/2012/11/buffett-backs-dimon-f…

Apparently Jamie Dimon now sees looming problems in markets.

Thoughts?

3 Likes

Not what he said a week ago

What changed?

Apparently Jamie Dimon now sees looming problems in markets.

Thoughts?

He just wants another transfer of funds from the tax-paying citizens in one form or another into the profits of his bank. Just when I think the 0.01% can commit no further theft from the poor to the rich, they find another way.

https://missingmoney.solari.com/

6 Likes

In the article Kopeki writes that at least since the Carter era the President had the ability to waive standard business accounting and securities-disclosure obligations required by the SEC. However, an entry in the Federal Register revealed that in 2006 President Bush delegated the authority to waive financial reporting to the Director of National Intelligence. At the time the article was written, the primary concern appeared to be in concealing top-secret defense projects and investments. However, to our knowledge there is nothing in the law to restricts its use of financial reporting exemptions to the defense industry. Perhaps the most important factor in maintaining a strong military is to ensure the strength and reputation of financial system and the dollar as the primary reserve currency of the world. It is possible that this authority could be used to conceal certain financial institutions from fully reporting if such waivers were deemed to be in the interest of national security. Note also that the timing of the transfer of this authority to the Director of National Intelligence just preceded the financial crisis; reporting exemptions may well have been granted during the crisis in order to conceal sensitive actions by the Federal Reserve and other key financial entities.

Classic conspiracy theory language. It is possible that some of these speculations might possibly be true … nah, this is BS.

4 Likes

Classic conspiracy theory language. It is possible that some of these speculations might possibly be true … nah, this is BS.

The following are not speculations:

https://missingmoney.solari.com/wp-content/uploads/2020/11/P…

2 Likes

The following are not speculations:
https://missingmoney.solari.com/w

What on earth would make you believe that?
Try a website that ends in “.gov”
https://www.youtube.com/watch?v=dEUVTMkq_7s

Jim

18 Likes

Jamie Dimon, the JPMorgan Chase (JPM) chairman and chief executive, got everyone’s attention when he warned there’s an economic hurricane coming, from rate hikes, the war in Ukraine and inflation.

Brian Moynihan, the chairman and chief executive of Bank of America (BAC), had a chance to respond, at the very same Bernstein Strategic Decisions Conference where Dimon intoned his weather-themed pessimism. “We’re in North Carolina,” he said. “You’ve got hurricanes that come every year.”

https://www.morningstar.com/news/marketwatch/20220602345/bri…

3 Likes