JPMorgan Chase CEO Jamie Dimon warned to be prepared for an economic ‘hurricane’ caused by interest rate hikes by the Federal Reserve (Fed) and the war in Ukraine.
Speaking at a financial conference in New York on Monday, Dimon said he was preparing the largest bank in the United States for the disaster and advised investors to do the same.
He added that although the situation looks good at the moment, but no one can predict whether the hurricane that will hit will be small or large.
"So you better be prepared," he told analysts and investors.
Dimon claims that the economy has been ‘distorted’ by inflation. He is also concerned that the Fed has begun releasing its bond portfolio, a process known as quantitative tightening and at the same time it is raising interest rates.
"The move is something the market is not ready for," Dimon said.
However, the Fed has no other way and the central bank has to raise rates as housing prices soar and there are other inflationary pressures.
Another big factor that makes Dimon worried is the war in Ukraine and its impact on commodities, including food and fuel. He predicted crude oil prices could jump as high as $ 150 to $ 175 a barrel if the crisis continues.
