(PresidentialHill.com)- In an interview with CNBC at the World Economic Forum, Jamie Dimon, CEO of J.P. Morgan Chase, expressed concern about underlying inflation.
Dimon was questioned about the economy’s prospects and what Powell, the head of the Federal Reserve, should do next. Dimon stated that economic forecasters, including the Fed, made inaccurate inflation predictions.
Dimon said he thought rates would probably go higher than 5% because he thinks there is a lot of underlying inflation, which won’t go away so quickly.
According to reports, the Federal Reserve increased interest rates in December to a range between 4.25% and 4.50%, the highest level in 15 years.
According to a report, J.P. Morgan Chase has set aside $1 billion in cash in anticipation of a mild recession and additional borrowers defaulting on their loans. The bank reported fourth-quarter earnings of $11 billion, a 6% increase from the previous year.
Despite recession worries expressed by J.P. Morgan and other major banks, Powell said on December 14 that the Federal Reserve still sees room to raise interest rates.
Dimon said he was aware that there would be ups and downs, as well as recessions. He said he doesn’t think about that all that much. He was more concerned that ineffective public policy stunts American economic expansion.
According to business reports, Brian Moynihan, CEO of Bank of America, stated that the bank is geared up for both a mild recession and a downside scenario where unemployment increases quickly.
According to Moynihan’s pessimistic scenario, unemployment will reach 5.5% in the first quarter of 2023 and remain above 5% through 2024.
In an interview with CNBC, Moynihan claimed the baseline scenario considers a mild recession. As a result, 95% of the reserve methodology is weighted toward a recessionary environment in 2023. But we also add to that a downside scenario.
J.P. Morgan was on the list of sponsors for the annual World Economic Forum event. This year’s meeting took place in Davos, Switzerland, from January 16 to 20.
They wasted their money.