JPMorgan Chase on Friday reported strong third-quarter numbers with earnings of $13.5 billion, or $4.33 per share. This represents an increase of 35 percent over the same period last year.
During today’s results presentation, the CEO of the American banking giant, Jamie Dimon, pointed out the many threats the world faces today.
Damon said this may be the most dangerous time the world has seen in decades.
The head of the largest US bank by assets pointed to the ongoing war in Ukraine, as well as the conflict now unfolding in Israel. The bank summit noted that conflicts “could have a far-reaching impact on energy and food markets, global trade and geopolitical conditions.”
Increases risk before interest rates rise
In addition to military conflicts, Dimon also pointed to the growing US national debt and persistent US government budget deficits, which he believes may increase the risk that interest rates and inflation will remain high for an extended period.
Along with rising inflation and rising interest rates, he warned of the consequences of the Federal Reserve’s attempt to reduce its bond holdings.
This process is called quantitative tightening, which is the opposite of quantitative easing, where the central bank increases the money supply. Austerity means that the central bank removes money from the economy.
– He said that it would lead to a decrease in liquidity in the system at a time when the forces of market creation are becoming increasingly limited due to regulations.
In the past, the big bank has not only warned its clients that interest rates may remain high for a long time, but that they may also rise significantly from now on.
Although we hope for the best, we are preparing the company for a wide range of outcome scenarios,” Dimon explained.
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