JPMorgan CEO Jamie Dimon Says Banking Crisis Not Over — Warns of ‘Repercussions for Years to Come’
JPMorgan Chase CEO Jamie Dimon says the U.S. banking crisis is not over and “there will be repercussions from it for years to come.” The executive added that recent bank failures “have significantly changed the market’s expectations,” and the odds of a recession have increased.
JPMorgan CEO Jamie Dimon on U.S. Economy, Recession, and Banking Crisis
Jamie Dimon, chairman and CEO of JPMorgan Chase, shared his concerns regarding the U.S. economy, recession, and the banking crisis in his annual letter to shareholders, published last week. The letter followed the recent collapse of several major banks in the U.S., including Silicon Valley Bank and Signature Bank. Calling recent bank failures a “banking crisis,” Dimon warned:
The current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come.
“Recent events are nothing like what occurred during the 2008 global financial crisis (which barely affected regional banks),” the JPMorgan boss explained. “At that time, there was enormous leverage virtually everywhere in the financial system.” In contrast, he noted: “This current banking crisis involves far fewer financial players and fewer issues that need to be resolved.”
Commenting on the Federal Reserve’s efforts to curb inflation and future take hikes, Dimon opined:
If we have higher inflation for longer, the Fed may be forced to increase rates higher than people expect despite the recent bank crisis.
In addition, he cautioned that quantitative tightening (QT) “may have ongoing impacts that might, over time, be another force, pushing longer-term rates higher than currently envisioned. This may occur even if we have a mild — or not-so-mild — recession, as we saw in the 1970s and 1980s.”
Dimon explained that the failures of Silicon Valley Bank and Credit Suisse “have significantly changed the market’s expectations, bond prices have recovered dramatically, the stock market is down, and the market’s odds of a recession have increased.” He emphasized:
While this is nothing like 2008, it is not clear when this current crisis will end.
Nonetheless, the JPMorgan executive insisted that the current economy is “pretty good” but reiterated that there are “storm clouds ahead.”
What do you think about JPMorgan CEO Jamie Dimon’s view of the economy and the banking crisis? Let us know in the comments section below.
Source: Bitcoin.com
The post JPMorgan CEO Jamie Dimon Says Banking Crisis Not Over — Warns of ‘Repercussions for Years to Come’ appeared first on Crypto Breaking News.
Text source: Crypto Breaking News
