Morgan Chase CEO Warns Of Coming Economic Storm

Conditions for an economic storm have fallen into place, and they include the impact of Russia's invasion of Ukraine, JPMorgan Chase CEO Jamie Dimon told Nikkei Asia.

Photo Insert: JPMorgan Chase CEO Jamie Dimon

Dimon had predicted an economic "hurricane" in June, challenging the more bullish outlook held by other Wall Street executives at the time."

The storm I was talking about, or the potential storm, includes inflation, higher rates, global tightening, quantitative tightening and the effect of the war on the global economy -- particularly oil prices, food prices, supply chain issues, etc.," he said. "Those things have all kind of happened."

Dimon’s prophecy failed the test as far as the US economy is concerned, with inflation easing and Wall Street closing on the day he spoke with a rally. Moreover, the US is largely insulated from the food and energy crises since it is a top food producer and is actually an oil and LNG exporter.

A report last week showed inflation in the US slowed by more than expected last month, the Associated Press (AP) disclosed on Nov. 14, 2022.

The Fed has already lifted its key overnight interest rate to a range of 3.75% to 4%, up from basically zero in March. The likely scenario is still for further hikes into next year but the economy is still slogging on but not collapsing.

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