Jamie Dimon says it is a ‘large mistake’ to suppose economic system will growth with so many dangers on the market

Jamie Dimon, chairman and chief govt officer of JPMorgan Chase & Co., speaks throughout the Institute of International Finance (IIF) annual membership assembly in Washington, DC, US, on Thursday, Oct. 13, 2022.

Ting Shen | Bloomberg | Getty Images

JPMorgan Chase CEO Jamie Dimon stated Monday that whereas the U.S. economic system is doing nicely, it could be a “large mistake” to imagine that it’ll final for years.

Healthy client stability sheets and rising wages are supporting the economic system for now, however there are dangers forward, stated Dimon, who was talking at a monetary convention in New York. Topping his considerations embody central banks reining in liquidity applications through “quantitative tightening,” the Ukraine warfare, and governments all over the world “spending like drunken sailors,” the chief stated.

“To say the patron is robust immediately, which means you’re going to have a booming atmosphere for years, is a big mistake,” he stated.

The world’s largest economic system has defied expectations for a downturn for the previous yr, together with from prognosticators like Dimon, head of the largest U.S. financial institution by belongings. Last yr, he warned {that a} potential financial hurricane was on the best way, citing the identical considerations round central banks and the Ukraine battle. But the U.S. economic system has confirmed resilient, main extra economists to count on {that a} recession may be prevented.

“Businesses really feel fairly good as a result of they take a look at their present outcomes,” Dimon stated. “But these issues change, and we do not know what the complete impact of all that is going to be 12 or 18 months from now.”

While JPMorgan and different banks have been “over-earning” on lending for years due to traditionally low default charges, strains have been rising in components of actual property and subprime auto lending, Dimon stated.

“If and when you have got a recession, which you are finally going to have, you will have an actual regular credit score cycle,” Dimon stated. “In a traditional credit score cycle, one thing all the time does worse than” anticipated, he added.

Dimon on laws, markets, China

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