• JPMorgan Chase CEO Jamie Dimon said he shouldn’t ever use the word „hurricane“ when warning about the U.S. economy.
• Dimon clarified that there are „storm clouds“ that „could be a hurricane,“ but he is not predicting a specific scenario.
• Despite the current uncertain economic environment, Dimon is still optimistic about the American consumer.
JPMorgan Chase CEO Jamie Dimon recently spoke with Fox Business about the current state of the U.S. economy and the looming possibility of an economic hurricane. When asked about his previous warning of an incoming economic hurricane, Dimon clarified that he should not use the word “hurricane” in this context. He explained that there are “storm clouds” that could turn into a hurricane, but he is not predicting a specific scenario.
Despite the current uncertain economic environment, Dimon is still optimistic about the American consumer. He noted that the consumer is still strong, with their balance sheets in good shape and spending 10% more than pre-Covid. He went on to explain that this is driving a strong economy. He also touched on the oil crisis, attributing it to Russia, Ukraine, oil, energy, food, and quantitative tightening.
When asked about the Federal Reserve raising interest rates, Dimon opined that it is not clear if the rate rise is enough to have a huge effect on smaller countries and poor nations. He also noted that the current situation is putting a strain on those who are relying on government stimulus for financial assistance.
Overall, Dimon does not think that the U.S. economy is headed for a hurricane, but he does think that “storm clouds” still remain. He is optimistic about the American consumer, but notes that there is still uncertainty in the markets and that individuals should be prepared for both good and bad outcomes.