Jamie Dimon, director of the largest American bank, predicts an “economic hurricane” in the coming months
Dimon, speaking at an AllianceBernstein-sponsored financial conference, said: “It’s a hurricane. Right now the weather is kinda nice, things are good, everyone thinks the Fed can handle this,” according to Bloomberg.
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However, “This hurricane is right out there, up the road, coming our way,” he added. “We just don’t know if it’s Miner or Superstorm Sandy or Andrew or something like that. You better get ready.
Dimon’s warning echoes one made earlier by former Goldman Sachs CEO Lloyd Blankfein, who told the CBS talk show Confront the Nation last month that there is a “very, very high” risk factor for an economic recession.
The Federal Reserve is shedding nearly $9 trillion in bonds and plans to enact another interest rate hike at its June meeting.
“JPMorgan is preparing and we’re going to be very conservative with our balance sheet,” Dimon said.
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