Skip to main content
Tags: jpmorgan chase | earnings | jamie dimon | inflation

Jamie Dimon: World Faces 'Most Dangerous Time in Decades'

Jamie Dimon: World Faces 'Most Dangerous Time in Decades'
(AP)

Friday, 13 October 2023 03:19 PM EDT

JPMorgan Chase CEO Jamie Dimon kicked off third-quarter earnings with a grim warning to investors. “Now may be the most dangerous time the world has seen in decades,” Dimon wrote in the company’s report.

The wars in Ukraine, Israel and Gaza “may have far-reaching impacts on energy and food markets, global trade and geopolitical relationships,” Dimon wrote.

In JPMorgan Chase’s earnings call Friday morning, Dimon said bank executives throughout the U.S. are “climbing the wall of worry,” a reference to resilient markets in times of economic uncertainty, CNN Business reports.

“And we should,” Dimon continued. “That’s kind of our job, to be prepared for potential outcomes you don’t expect.”

The JPMorgan chief said bankers need to remain vigilant about the unknown: “We do a hundred stress tests a week. Usually, geopolitics presents itself as a deep recession or a mild recession — and markets doing well is not a reason to say they will continue to do well.”

JPMorgan economists are now predicting that the U.S. will achieve a soft landing, whereby it skirts a recession and high unemployment.

“Currently, U.S. consumers and businesses remain generally healthy,” Dimon said. “I’m less concerned about the economic effect that, obviously, the geopolitical.”

Inflation, however, is bound to remain high for some time due to tight labor markets and high government debt, Dimon said. Interest rates, inevitably, will rise higher, he added.

In previous interviews, Dimon has said the Fed Funds Rate could increase by another 1.5 percentage points to 7%. The rate is currently in the 5.25% to 5.5% range.

JPMorgan Chase — with $3.9 trillion in assets the largest bank in the U.S., and a bellwether for the U.S. economy — reported earnings of $4.33 per share, beating analysts' $3.90 predictions.

JPMorgan's profit rose in the third quarter as it reaped a windfall from surging interest payments and the acquisition of failed First Republic Bank.

The Federal Reserve's interest-rate increases have bolstered banks' net interest income (NII), or the difference between what they earn on loans and pay out on deposits.

NII rose 30% to $22.9 billion, the bank said.

© 2024 Newsmax Finance. All rights reserved.


StreetTalk
JPMorgan Chase CEO Jamie Dimon kicked off third-quarter earnings with a grim warning to investors. "Now may be the most dangerous time the world has seen in decades," Dimon said.
jpmorgan chase, earnings, jamie dimon, inflation
347
2023-19-13
Friday, 13 October 2023 03:19 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
TOP

Interest-Based Advertising | Do not sell or share my personal information

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved
Download the NewsmaxTV App
Get the NewsmaxTV App for iOS Get the NewsmaxTV App for Android Scan QR code to get the NewsmaxTV App
NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved