JPMorgan Chief Executive Jamie Dimon on Tuesday slammed central bank financial forecasts as “completely wrong” as he discussed the economic outlook.
During a panel discussion at the Future Investment Summit in Saudi Arabia, the Wall Street veteran said financial forecasts for next year should be modest and encouraged people to remain wary of the possibility of further interest rate hikes.
“Eighteen months ago, central banks were 100% completely wrong,” he told an audience at the event in the Saudi Arabian capital Riyadh. “I’m very cautious about what might happen next year.”
Dimon noted that his caution about the near-term economic outlook is related to fiscal spending, which is “more than at any time in peacetime.”He compared the current environment to the 1970s, when the United States saw spiral inflation and sharp interest rate hike.
However, the J.P. Morgan boss said he was skeptical about how much impact monetary policy would still have on the economy despite government action. Continue to spend huge sums of moneyDimon believes a lot of it “will be wasted.”
“There is a sense of omnipotence, that central banks and governments can manage all of these things. I’m cautious,” he said on Tuesday. “I don’t think it makes a difference whether rates go up 25 basis points or more – zero, nothing, meaningless. Whether the entire curve goes up 100 basis points (or not)… I would urge people to prepare for that. I Don’t know if that’s going to happen.”
Fed widely criticized Market watchers and economists believe the failure to use its toolkit to tackle inflation before it was too late allowed inflation to surge well above the central bank’s 2% target. A hawkish policy is needed Help reduce costs.
Dimon himself has been an outspoken critic of the Fed, saying last month that the central bank was “a day late and short of dollars” and was just “catching up” in curbing inflation.
In an interview in September times of indiaDimon believes Americans are on an economic “high” due to all the fiscal and monetary stimulus that has been pumped into the economy since the pandemic.
He urged people to prepare for interest rates to rise to 7%, noting that JPMorgan “urges our clients to prepare for this pressure.”
Svlook
