Jamie Dimon Chip Somodevilla/Getty Pictures
- JPMorgan’s CEO mentioned he sees problems ahead for the US economy.
- Banking sector woes, a hawkish Fed, and Russia’s invasion of Ukraine make for an uncertain macro forecast.
- The investment bank posted record income for its 1st fiscal quarter on the back of greater interest prices.
JPMorgan CEO Jamie Dimon warned investors of looming “storm clouds” ahead for the US economy in the firm’s earnings report on Friday.
The bank posted sturdy outcomes, with record income of $38.three billion handily beating expectations on the back of greater interest revenue thanks to the US central bank’s aggressive monetary tightening campaign.
“The U.S. economy continues to be on normally wholesome footings —consumers are nevertheless spending and have sturdy balance sheets, and companies are in great shape,” Dimon mentioned. “On the other hand, the storm clouds that we have been monitoring for the previous year stay on the horizon, and the banking sector turmoil adds to these dangers.”
Dimon’s warning on the economy does not necessarily imply hard instances ahead for the firm, as trading desks generally thrive on heightened volatility, but the head of the biggest US bank is nevertheless feeling nervous about a handful of huge headwinds. Banking sector woes, a hawkish Fed, uncertain relations with China, and Russia’s invasion of Ukraine all contribute to an uncertain macro forecast, the JPMorgan chairman mentioned.
“The banking predicament is distinct from 2008 as it has involved far fewer economic players and fewer troubles that want to be resolved, but economic circumstances will probably tighten as lenders come to be far more conservative, and we do not know if this will slow customer spending,” Dimon mentioned.
He added: “We also continue to monitor for potentially greater inflation for longer (and hence greater interest prices), the inflationary effect of continued fiscal stimulus, the unprecedented quantitative tightening, and geopolitical tensions such as relations with China and the unpredictable war in Ukraine.”
JPMorgan stock shot up 7% in Friday’s session, trading about $138 per share.
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