Jamie Dimon, CEO of JPMorgan Chase, has issued a strong warning to Wall Street, cautioning that inflation could continue to rise and that a recession is still a possibility. Dimon delivered this message during The New York Times DealBook Summit 2023 in New York, emphasizing that the current state of the economy is precarious and that businesses should be prepared.
According to Dimon, many of the current global issues, such as the need for more funding for the green economy and addressing energy crises, are contributing to inflation. He also voiced his concerns about the U.S. labor market’s resilience in the face of inflation, stating that it is “hurting people.”
Dimon also expressed his concerns about the effects of previously delivered stimulus money during the Covid-19 lockdowns and the subsequent economic “sugar high” resulting from quantitative easing by the Federal Reserve. He warned that the effects of easing and quantitative tightening, along with ongoing geopolitical issues, could have a significant impact on the economy.
Furthermore, Dimon highlighted the potential dangers of ongoing geopolitical conflicts, including wars in Ukraine, Israel, and Gaza, which could have widespread impacts on energy and food supplies, trade, and geopolitical relations. He raised concerns about nuclear blackmail, climate change, and the risk of another pandemic, advocating for the need for strong American leadership to address these issues.
Regarding business in China, Dimon clarified that JPMorgan Chase does business with companies like TikTok parent company ByteDance and is partially funding the planned initial public offering of Chinese fast fashion company Shein. He emphasized that the company follows the lead of the U.S. government when conducting business in China and believes that companies like Shein do not pose a threat to U.S. national security.
In addressing concerns about national security threats posed by Chinese companies, Dimon defended JPMorgan Chase’s due process with all of its clients and expressed confidence in conducting business with China.