JPMorgan Is Bracing Itself for Economic ‘Hurricane’

Jamie Dimon advised investors to be prepared for an economic “hurricane”, as the economy faces unprecedented challenges.

At Wednesday’s conference sponsored by AllianceBernstein Holdings, the JPMorgan Chase & Co. chief operating officer stated that “that hurricane is right out there on the road coming in our direction.” We don’t know if this is a minor hurricane or Superstorm Sandy. You better brace yourself.”

Dimon stated at JPMorgan’s investor day in May there were “storm clouds” over the US economy. However, he indicated that he has since revised that forecast due to the difficulties faced by the Federal Reserve is trying to control inflation. Dimon stated that right now, it’s sunny and things are going well, and everyone believes the Fed can handle it.

After Dimon’s comments on the economy, shares of the company fell 1.8% to $129.81 in New York. This extends the decline to 18% this year.

Last month JPMorgan economists reduced their growth outlook for the second half of 2022 to 2.4% from 3%, the first half of 2023 to 1.5% off 2.1%, and the second half of 2023 to 11% off 1.4%. They also cited falling stock prices and higher mortgage rates, as well as a stronger dollar relative to trading partners.

Dimon stated Wednesday that JPMorgan was preparing for the turbulence by being conservative in its balance sheet.

He said, “I want to get rid of non-operating deposits again, which is possible in size to protect ourselves so that we can serve our clients in difficult times.” “That’s what we’re dealing in.”

He cited the strength and availability of jobs, rising wages, and the strength of consumers as “bright cloud” economics.

Charlie Scharf, Wells Fargo & Co.’s Chief Executive Officer, stated Wednesday that he expected the company’s loan growth to moderate following a rise in the first quarter.


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