JPMorgan CEO Warns Economic ‘Hurricane’ Approaching America: ‘You Better Brace Yourself’

Jamie Dimon, CEO of JP Morgan Chase & Co., warned Wednesday that an economic “hurricane” is forming that could, unfortunately, make landfall in the United States.

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At a financial conference in New York, Dimon announced that America’s largest bank is preparing for the coming storm, Bloomberg News reported.

“You know, I said there’s storm clouds, but I’ll change it — it’s a hurricane,” Dimon warned.

Dimon explained that economists don’t know if the upcoming economic storm will be “a minor or super storm Sandy,” referring to the 2012 hurricane that made landfall in New Jersey and caused tens of billions of dollars in damage.

“You’d better arm yourself,” he added. “JPMorgan is gearing up and we’re going to be very conservative with our balance sheet.”

Two specific factors have worried Dimon and JPMorgan. The first is the Federal Reserve’s quantitative tightening should start later this month. The second is the war in Ukraine, which will continue to negatively affect the commodity market, especially the oil market.

“Right now it’s kind of sunny, things are going well, everyone thinks the Fed can handle it,” Dimon told CNBC reported. “This hurricane is right out there, down the road, coming our way.”

One more thing?

Last month, JPMorgan economists slashed their growth prospects for the second half of 2022 and 2023.

The bank had expected 3% growth for the second half of 2022, but lowered that expectation to just 2.4%, while growing growth prospects for the first half of 2023 from 2.1% to 1.5% and for the second half of 2023 reduced to 1.5% 1% from 1.4%. Persistent economic problems were behind the muted expectations.

Meanwhile, just two weeks ago, analysts at JPMorgan warned that Americans could be paying at least $6 a gallon for gasoline by August. The national average reached $4.67 per gallon a new record on Wednesday.