JPMorgan Chase CEO Warns: Exercise Caution in the Next Two Years as Strong Risks Will Impact the US Economy

Zhitong App has learned that Jamie Dimon, CEO of JPMorgan Chase, expressed caution about the future of the US economy in the next two years due to a combination of financial and geopolitical risks. Dimon stated at the World Economic Forum in Davos, Switzerland, "In 2024 and 2025, all these very powerful forces will impact us."

Dimon mentioned the Ukrainian situation, terrorist activities in Israel and the Red Sea region, as well as quantitative tightening. He specifically pointed out that there are still questions about how quantitative tightening operates, implying that the impact of quantitative tightening on the economy may not be fully understood.

Quantitative tightening typically refers to the process in which central banks reduce the size of their balance sheets, usually by selling the bonds they hold or ceasing to purchase new bonds, with the aim of tightening monetary policy. Dimon's comments reflect his concerns about the uncertainty and potential risks in the current global economic environment.

Despite being the largest bank in the United States and achieving record profits in recent years, and despite the US economy exceeding expectations, Dimon has consistently advocated a cautious approach due to the erosionary impact of inflation, but with the healthy employment levels and savings during the pandemic, US consumers have remained relatively strong.

In Dimon's view, the relatively strong stock market in recent months has reassured investors about potential future risks. The S&P 500 index has risen 19% in the past year and is not far from its peak level.

Dimon said, "I think it's a mistake to assume that everything is fine. When the stock market goes up, we all think it's great, like a little pill. But remember, we already have too much fiscal and monetary stimulus, so I tend to be more cautious."

Meanwhile, David Solomon, CEO of Goldman Sachs, also stated that although the market environment is "feeling better than a year ago" when geopolitical issues are excluded, he is concerned about the soaring level of US debt.

Solomon said, "I'm very concerned about the growth of debt, it's a huge risk issue that we will have to address and deal with, just maybe not in the next six months."

In fact, Dimon is no stranger to dire predictions. In 2022, he warned investors of an economic "hurricane" due to quantitative tightening and the conflict in Ukraine.

Overall, in the extensive interview on Wednesday, Dimon discussed his views on Ukraine, former President Donald Trump, immigration, commercial real estate, and Bitcoin.

Dimon said, "We have to make the American public understand that this is why we fight for freedom and democracy in the free world."