Jamie Dimon Photo source Company’s Website
Jamie Dimon, CEO of JPMorgan Chase, issued a dire warning to the US Federal Reserve not to raise interest rates up to as much as 7%. The Fed said that it may issue another quarter point increase in the rate before the end of the year, but that it would then cut the rate in 2024.
Central banks the world over have been raising their rates in an attempt to lower high global inflation. The inflation problem began in 2021 as the world came out of the Covid shutdowns and supply chains could not meet the sudden increases in demand. Then came the Russian invasion of Ukraine at the end of February 2022, which caused disruptions in supply chains. Also, sanctions imposed on Russia in response to the invasion led to spikes in the price of oil and other basic goods.
“I am not sure if the world is prepared for 7%,” Jamie Dimon told The Times of India in an interview. “I ask people in business, ‘are you prepared for something like 7%? The worst case is 7% with stagflation.”
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He also said that “no one knows” what the risks of a hard landing for the US economy would be.
“There is a range of outcomes. It will be affected by everything else – Ukraine, oil, gas, war, Europe,’ added Jamie Dimon. “I would be cautious. I think we are feeling pretty good because of all the monetary and fiscal stimulus.”
But Jamie Dimon also warned “When rates go up sharply, there is stress in debt repayment. How are businesses living with such high rates?”
The problem, as he sees it, is that during the Covid crisis rates went down to Zero to stave off a depression and now the world banks are raising rates rapidly.
“We have to deal with all these serious issues over time, and your deficits can’t continue forever,” he said. “So rates may go up more. But I hope and pray there is a soft landing.”
Jamie Dimon is the chairman and chief executive officer of JPMorgan Chase & Co., one of the world’s largest banks. He has been in this role since 2005 and is widely considered to be one of the most powerful and influential people in the financial world.
Dimon was born in New York City in 1956 and began his career at American Express. He later held senior positions at Commercial Credit and Travelers Group before becoming chairman and CEO of Bank One in 2000. In 2004, Bank One merged with JPMorgan Chase, and Dimon became president and chief operating officer of the combined company. He was named CEO in 2005 and chairman in 2006.
Under Jamie Dimon’s leadership, JPMorgan Chase has become one of the most successful and profitable banks in the world. It has also been a leader in financial innovation, particularly in the areas of investment banking and asset management. Dimon is also known for his outspokenness on a variety of issues, including banking regulation, economic policy, and social justice.
Jamie Dimon is a controversial figure, but there is no doubt that he is one of the most important and influential people in the financial world. He is a shrewd businessman, a skilled negotiator, and a powerful advocate for his bank and his industry.
