Finance & Stock Market
The U.S. economy will be impacted in 2024 and 2025 by "all these very powerful forces," according to Jamie Dimon.
By - 18 Jan 2024 02:26 AM
Jamie Dimon, the CEO of JPMorgan Chase, stated that he is still cautious about the U.S. economy for the next two years due to a mix of geopolitical and financial risks.
At the World Economic Forum in Davos, Switzerland, on Wednesday, Dimon told Andrew Ross Sorkin on CNBC, "You have all these very powerful forces that are going to be affecting us in '24 and '25.""I still wonder if we fully comprehend the mechanisms behind the quantitative tightening, the terrorist activity in Israel and the Red Sea, and the Ukraine," Dimon stated. The term "quantitative tightening" describes actions taken by the Federal Reserve to lower the size of its balance sheet and scale back earlier initiatives, such as bond-purchasing plans.
Despite record profits at JPMorgan, the country's largest bank, and an unexpectedly strong U.S. economy, Dimon has urged caution over the past few years. Because of high employment rates and savings from the pandemic, the American consumer has largely remained healthy despite the damaging effects of inflation.n Dimon’s view, the relatively buoyant stock market of recent months has lulled investors on the potential risks ahead. The S&P 500
market index rose 19% in the past year and isn’t far from peak levels.
“I think it’s a mistake to assume that everything’s hunky-dory,” Dimon said. “When stock markets are up, it’s kind of like this little drug we all feel like it’s just great. But remember, we’ve had so much fiscal monetary stimulation, so I’m a little more on the cautious side.
