JPMorgan Chase CEO joins ‘Mornings with Maria’ for a 3-part interview Tuesday at 6 am ET.
JPMorgan Chase CEO Jamie Dimon said Wednesday he does not envision the U.S. falling into a recession this year, but emphasized there are major factors challenging the economy right now that could have unforeseen impacts.
JP Morgan CEO Jamie Dimon looks on during the inauguration the new French headquarters of JP Morgan bank, June 29, 2021 in Paris. (AP Photo/Michel Euler, Pool, File / AP Newsroom)
Dimon said during the big bank’s first-quarter earnings call that the economy has “strong underlying growth right now” that keeps him from predicting a recession in the near future, saying that growth will continue through the second and third quarters but “after that, it’s hard to predict.”
“I can’t forecast the future any more than anyone else,” Dimon said, adding, “the Fed forecasted and everyone forecasts and everyone’s wrong all the time.”
MARKETS ARE UP, THE ‘WORST IS BEHIND US’: EXPERT
The CEO then pointed to two countervailing factors he sees as “storm clouds on the horizon”: soaring inflation and Russia’s war against Ukraine.
Federal Reserve Chair Jerome Powell listens during a Senate Banking Committee hearing on Capitol Hill in Washington. (Al Drago/The New York Times via AP, Pool / AP Newsroom)
“Inflation and Ukraine are powerful forces that threaten the economy,” Dimon said, according to Reuters. “The Fed needs to try to manage this economy and try to get to a soft landing, if possible.”
EARNINGS ARE GOING TO GET ‘WORSE’ DURING Q2: EXPERT
JPMorgan reported a 42% decline in first-quarter profit, earning $8.28 billion, or $2.63 per share, missing Wall Street expectations of $2.72 per share. Revenue from the same quarter a year ago fell 5% to $30.72 billion, but surpassed analysts’ expectations of $30.59 billion.
The disappointing results caused the bank’s shares to fall to $125.65 – their lowest since January 2021.
A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/Files (REUTERS/Mike Segar/Files / Reuters Photos)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 127.20 | -4.30 | -3.27% |
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“We remain optimistic on the economy, at least for the short term – consumer and business balance sheets as well as consumer spending remain at healthy levels,” Dimon said in a statement accompanying the results. “But see significant geopolitical and economic challenges ahead due to high inflation, supply chain issues and the war in Ukraine.”
