Dimon: ‘I Think the Odds of Rates Going Higher From Here Are Higher Than What Other People Think’
Jamie Dimon, the lead executive at JPMorgan Chase, shared his insights on a myriad of topics including the March 2023 U.S. banking turmoil, soaring interest rates, fluctuating consumer savings, and the escalating conflict in Ukraine. The Economist probed Dimon about his perspective on whether the 2023 banking crisis was truly behind us, to which he replied, it was “for the most part.”
- Dimon labeled the banking calamity as a “mini-crisis” compared to the events of 2008 or 2009.
- He highlighted that certain banks suffered from interest rate exposure and witnessed “uninsured deposits that kind of ran like a flock of birds.”
- Dimon proposed his belief that rates have the potential to “go up from here and they might rear its ugly head again.”
- JPMorgan foresees American consumers exhausting their pandemic savings by the close of the year.
- Dimon is more concerned about the war in Ukraine spreading out and the potential for nuclear blackmail.
Dimon is confident that the recent banking crisis was not as severe as the events of 2008 or 2009, mainly due to less leverage and more capital. However, he warns that interest rates could rise further and cause potential upheaval in the market. Additionally, he predicts that American consumers will soon exhaust their pandemic savings. While Dimon acknowledges the possibility of a mild recession, he is more worried about other serious global issues such as the war in Ukraine and potential food shortages in Africa.