‘Storm is coming’

JPMorgan Chase CEO Jamie Dimon warned investors to prepare for an economic “storm” caused by the Ukraine conflict and the tightening of monetary policy by the US Federal Reserve (Fed). ).

In this sharing, his outlook for the world’s No. 1 economy has deteriorated a lot compared to last week, when JPMorgan held its first investor conference in 2 years. At that time, he used the word “clouds and storms” to describe the dangers to the economy.

“I call them storm clouds, big storm clouds. But now they’ve grown into a hurricane,” he told the Financial Services Conference hosted by Autonomous Research.

“That storm is getting closer and closer. We can’t tell if it’s a minor storm or a superstorm like Hurricane Sandy. And you better be prepared.”

The comments of Mr. Dimon, who accurately forecast the movements of the US stock market in recent times, were made in the context of growing concerns about the “health” of the world’s No. 1 economy. .

Dimon warned investors that the Ukraine conflict will continue to increase pressure on global commodity markets, and oil prices could be pushed to the threshold of 150-175 USD/barrel.

Brent oil price is currently trading at around 117 USD/barrel. The European Union (EU) this week reached a high consensus on a ban on oil imports from Russia by sea. This is the strongest blow against Russia since the country conducted a special military operation in Ukraine.

He also warned of the risk of market volatility as the Fed implements its “quantitative tightening” plan, through which the bank will begin to cut its balance sheet worth nearly $ 9 trillion. from the beginning of June, in order to reduce inflation.

“They have no choice because there is too much liquidity in the system,” he said. They have to cut liquidity to stop speculation, reduce housing and commodity prices. Many of you have never experienced such a phase,” he said.

When the Fed tightens quantitatively, the supply of US Treasury bills will increase sharply, causing turmoil in the market, Dimon said.

“Global capital flows will have a big change. I don’t know what the impact will be but there are certain preparations,” he said.

The “bright clouds” for the US economy, Dimon said, are consumer spending, the job market and rising worker earnings. He added that the financial and banking sectors “are very solid”.

“I think we can expect everything to be okay. I hope so,” Dimon said. “But who knows what?”

According to Trong Dai